Exercise 21-20 (Part Level Submission)

In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.

1.Expected sales: June $526,100, July $612,100.

2.Cost of goods sold is expected to be 75% of sales.

3.Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold.

4.The beginning inventory at June 1 will be the desired amount.

What is the budgeted merchandise purchases for June?(Round to the nearest whole dollar) Please show work.