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 $529,600, July $615,500.

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

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

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

(a) Compute the budgeted merchandise purchases for June. (Round answers to the nearest whole dollar, e.g. 5,275.)

B. Prepare the budgeted multiple-step income statement for June through gross profit.

GRAND STORES Merchandise Purdhases Budget