Calculate Monthly Purchases: November 222,000 Budgeted ending inventory Cost of goods sold (estimated) Required available inventory Budgeted beginning inventory Required purchases August September October $ 46,800 $ 39,600 s 44,400 243,000 234,000 198,000 289,800 273,600 242,400 48,600 46,800 39,600 $ 241,200 $ 226,800 $ 202,800 Calculate Payments Made for Inventory: Purchases paid in September October August After October August purchases September purchases October purchases Purchases $ 241,200 226,800 202,800 Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases Hardy Company's cost of goods sold is consistently 60% of soles. The company plans ending merchandise inventory for each month equal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 40% of the purchases made during a month is paid for in that month, Another 45% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are August (actual), $405,000; September (actual). $390,000 October (estimated), $330,000; and November (estimated). $370,000 Use this information to determine October's expected cash payments for purchases, Calcutat Monthly Purchase August September October November Budgeted ending inventory $ 48.500 5 39,800 s 44,400 Cost of goods sold (estimated) 243.000 234.000 198,000 222.000 Required available inventory 299,800 273,600 242,400 Budgeted beginning inventory 48,000 46,800 39,000 3 Required purchases 241,200 $ 226,800 5 202,800 e encos Calculate Payments Made for inventory: Purchases paid in September October August After October August purchase September purchases October purchases Purchases $ 241,200 225.000 202 100 Determine October's Expected Cash Payments for Purchases October's expected cash payments for purch