Exercise 23-20 (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 $523,300, July $601,800.
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)

	Your answer is correct.

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

GRAND STORES Merchandise Purchases Budget For the Month Ending June 30, 2017
Budgeted Cost of Goods Sold		$ 392475
Add : Desired Ending Merchandise Inventory		135405
Total Materials Required		527880
Less : Beginning Merchandise Inventory		117743
Required Merchandise Purchases		$ 410137

Attempts: 1 of 3 used

*(b)

	Your answer is partially correct. Try again.

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

GRAND STORES Budgeted Income Statement For the Month Ending June 30, 2017
Expected Sales		$ 523300
Beginning Merchandise Inventory		117743
Required Merchandise Purchases
Budgeted Cost of Goods Available for Sale
Desired Ending Merchandise Inventory		135405
Cost of Goods Sold		392475
Budgeted Gross Profit		$