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, $1,100,000; June, $1,400,000; July, $1,350,000; and August, $1,200,000 Accounts Merchandise Payable Inventory May 31 $120,000 $300,000 June 30 120,000 400,000 July 31 200,000 400,000 August 31 110,000 390,000 August (1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: June July Ending accounts payable Payments on account Subtotal 0 0 0 Beginning accounts payable Purchases $ 0 $ 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 (400,000) (400,000) Cost of goods sold (390,000)