Kelly Products, a wholesaler of fishing equipment, budgeted the following sales for the indicated months:

	June 2012	July 2012	August 2012
Sales on account	$1,840,000	$1,930,000	$1,910,000
Cash sales	34,500	197,500	240,500
Total sales	$1,874,500	$2,127,500	$2,150,500

All merchandise is marked up to sell at its invoice cost plus 15%. Target merchandise inventories at the beginning of each month are 25% of that month's projected cost of goods sold.

1.	Compute the budgeted cost of goods sold for the month of June 2012.
2.	Compute the budgeted merchandise purchases for July 2012.

July Merchandise Purchases
	Desired ending inventory
Plus:	Cost of goods sold
	Total merchandise needed
Less:	Beginning inventory
	Required purchases