Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,100,000; June, $1,450,000; July, $1,450,000; and August, $1,500,000 May 31 June 30 July 31 August 31 Accounts Merchandise Payable Inventory $160,000 $200,000 150,000 200,000 300,000 400,000 110,000 340,000 August |(1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: June July Ending accounts payable Payments on account Subtotal Beginning accounts payable I Purchases 0 $ 0 $ August (2) Compute the budgeted amounts of cost of goods sold. Budgeted amounts: June July Beginning inventory Purchases Cost of goods available for sale Ending inventory (200,000) (400,000) Cost of goods sold (340,000)