Montel Company's July sales budget shows sales of $560,000. The company budgets beginning merchandise inventory of $56,000 and ending merchandise inventory of $31,000 for July. Cost of goods sold is 20% 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. Budgeted Cost or Morchandiso Purchases