In September 2016, the management of Whitehorse Company assembles the followingdata in preparation of budgeted merchandise purchases for the months of October and November.
1)Expected Sales
a)October                           $700,000
b)November                         800,000
c)December                          600,000
2)Cost of goods sold is expected to be 60% of sales
3)Desired ending merchandise inventory is 10% of the next month's cost of goods sold.
4)The beginning inventory at October 1 will be the desired amount.
INSTRUCCIONS
Compute the budgeted merchandise purchases for October and November.
Use a columnar format with separate columns for each month.