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In September 2019, the management of Rye Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.

In September 2019, 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. Instructions Compute the budgeted merchandise purchases for October and November. Use a columnar format with separate columns for each month.

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