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Montel Company's July sales budget shows sales of $510,000. The company budgets beginning merchandise inventory of $65,000 and ending merchandise inventory of $35,000 for July.

image text in transcribed Montel Company's July sales budget shows sales of $510,000. The company budgets beginning merchandise inventory of $65,000 and ending merchandise inventory of $35,000 for July. Cost of goods sold is 30% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory) to solve for purchases

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