Annie B$$s Homemade$$Ice Cream buys branded t$-$shirts from a supplier for $$12\mathrm{.}00$ each and sells them to customers for $$20\mathrm{.}00$ apiece. Next year, it expects to sell an average of $50$ t$-$shirts per month and hopes the following year$$s unit sales will grow by $20\%.$ This year$$s ending inventory includes $120$ t$-$shirts and the company expects next year$$s ending inventories to equal $25\%$ of the following year$$s sales.

Required:

Prepare a merchandise purchases budget for next year.

Budgeted COGS $($need dollar amount

Add Desired ending merch inventory $($need dollar amount$)$

Total Needs $($Need dollar amount$)$

Less beginning merch inventory $($need dollar amount$)$

Required Purchases $--$ $$7920$