In May 2020, the budget committee of Big Jim Stores assembles the following data for preparing the merchandise purchases budget for the month of June 2. 1. Expected sales: June $482,000: July $575,000 Cost of goods sold is expected to be 75% of sales. Desired ending merchandise inventory is 30% of the following month's cost of goods sold The beginning inventory at June 1 will be the desired amount 3. 4 BIG JIM STORES Budgeted Income Statement For the Month Ending June 30, 2020 Inventory, June 1