Memphis Company's May sales budget calls for sales of $920,000. The store expects to begin May with $52,000 of inventory and to end the month with $57,000 of inventory. Gross margin is typically 35% of sales. Compute the budgeted cost of merchandise purchases for May.

Multiple Choice

• $593,000.

• $603,000.

• $598,000.

• $322,000.

• $327,000.