In September 2016, the management of Rye Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.

1.		Expected Sales
			October		$1,500,000
			November		2,100,000
			December		2,700,000
2.		Cost of goods sold is expected to be 70% of sales.
3.		Desired ending merchandise inventory is 20% of the next month's cost of goods sold.
4.		The beginning inventory at October 1 will be the desired amount.

Compute the budgeted merchandise purchases for October and November.

RYE COMPANY Merchandise Purchases Budget For the Months of October and November, 2016 October November Less