In May 2022, the budget committee of Cullumber Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.

1.		Expected sales: June $530,000, July $636,000.
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.

CULLUMBER STORES Merchandise Purchases Budget choose the accounting period June 30, 2022For the Month Ending June 30, 2022For the Quarter Ending June 30, 2022
select an opening merchandise purchases budget item Units to Be ProducedBeginning Merchandise InventoryRequired Merchandise PurchasesDirect Materials PurchasesDesired Ending Merchandise InventoryTotal Materials RequiredBudgeted Cost of Goods SoldDirect Materials per Unit		$enter a dollar amount
select between addition and deduction AddLess: select an item Units to Be ProducedRequired Merchandise PurchasesBeginning Merchandise InventoryDirect Materials PurchasesBudgeted Cost of Goods SoldDesired Ending Merchandise InventoryTotal Materials RequiredDirect Materials per Unit		enter a dollar amount
select a summarizing line for the first part Budgeted Cost of Goods SoldTotal Materials RequiredUnits to Be ProducedDirect Materials PurchasesDirect Materials per UnitBeginning Merchandise InventoryDesired Ending Merchandise InventoryRequired Merchandise Purchases		enter a total amount for the first part
select between addition and deduction LessAdd: select an item Required Merchandise PurchasesUnits to Be ProducedDirect Materials per UnitDirect Materials PurchasesTotal Materials RequiredBudgeted Cost of Goods SoldDesired Ending Merchandise InventoryBeginning Merchandise Inventory		enter a dollar amount
select a closing merchandise purchases budget item Direct Materials PurchasesDesired Ending Merchandise InventoryUnits to Be ProducedTotal Materials RequiredRequired Merchandise PurchasesBudgeted Cost of Goods SoldBeginning Merchandise InventoryDirect Materials per Unit		$enter a total dollar amount

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