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, $1,350,000; July, $1,350,000; and August, $1,500,000 May 31 June 30 July 31 August 31 Accounts Merchandise Payable Inventory $180,000 $280,000 120,000 400,000 200,000 300,000 120,000 310,000 $ (1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: June July Ending accounts payable $ 120,000 $ 200,000 Payments on account 1,350,000 1,350,000 Subtotal 1,470,000 1,550,000 Beginning accounts payable Purchases $ 1,470,000 $ 1,550,000 August 120,000 1,500,000 1,620,000 $ 1,620,000 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 (400,000) (300,000) Cost of goods sold (310,000)