Big Sound, a merchandising company specializing in home computer speakers, budgets its monthly cost of goods sold to equal 70% of sales. Its inventory policy calls for ending inventory at the end of each month to equal 20% of the next month's budgeted cost of goods sold. All purchases are on credit, and 25% of the purchases in a month is paid for in the same month. Another 60% is paid for during the first month after purchase, and the remaining 15% is paid for in the second month after purchase. The following sales budgets are set: July, $350,000; August, $290,000; September, $320,000; October, $275,000; and November, $265,000. (Hint: For part 1, refer to Exhibits 22A.2 and 22A.3 for guidance, but note that budgeted sales are in dollars for this assignment.) (1) Compute the budgeted merchandise purchases for July, August, September, and October. July August September October November Budgeted ending $ 40,600 $ 44,800 $ 38,500 $ 37,100 inventory Sales (estimated) 210,000 290,000 320,000 2,750,000 Required available 250,600 334,800 358,500 2,787,100 inventory Cost of goods sold 245,000 203,000 224,000 192,500 (estimated) Required purchases $ 5,600 $ 131,800 $ 134,500 $2,594,600 (2) Compute the budgeted payments on accounts payable for September and October. ---------- Purchases paid in ------------- After Purchases August September October | October July purchases $ 5,6001 $ 201,6001 $ 38,500f $ 191,100 August purchases 131,800 290,000 320,000 275,000 $-753,200 September purchases 134,5001 183,7501 262,5001 229,600 (541,350) October purchases 2,594,600 (3) Compute the budgeted ending balances of accounts payable for September and October. % unpaid Amount as of September Purchases Santomhor unpaid as of 30 September 30 July purchases $ 5,600 0% August purchases 131,800 15% 31,080 September purchases 134,500 75% 163,275 September 30 budgeted accounts $ 194,355 payable % unpaid Amount October Purchases as of unpaid as of October 31 October 31