Ahmed Company purchases all merchandise on credit It recently budgeted the month-end accounts payable balances and merchandise Inventory balances below. Cash payments on accounts payable during each month are expected to be May, $1200,000: June, $1.400.000: July $1,350.000; and August $1,300,000 Recounts Merchandise Payable Inventory May 315170,000 $240,000 June 160,000 300,000 July 300,000 400,000 August 30.000 390,000 31 30 (1) Compute the budgeted amounts of merchandise purchases Budgeted amounts: June July August Ending accounts payable Payments on account Subtotal Beginning accounts payable Purchases (2) Compute the budgeted amounts of cost of goods sold. Budgeted amounts: June July August Beginning inventory Purchases Cost of goods available for sale Ending inventory (300.000) (400.000) (390,000) Cost of goods sold Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 40,000 units. Company policy is to end each month with merchandise Inventory equal to 20% of budgeted sales for the following month Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 200,000 units in October. Sales (Units) 200,000 330,000 300,000 Purchases (Units) 226.000 324.000 280,000 August September Prepare the merchandise purchases budgets for the months of July, August, and September WALKER COMPANY Merchandise Purchases Budget For July, August, and September July August Budgeted ending inventory units September 40,000 Required units of available inventory Units to be purchased 226,000 324,000 280,000