Naumburg GmbH has adopted the following policies regarding merchandise purchases and inventory. At the end of any month, the inventory should be 15,000 plus 90% of the cost of goods to be sold during the following month. The cost of merchandise sold averages 70% of sales. Purchase terms are generally net, 30 days. A given month's purchases are paid as follows: 30% during that month and 70% during the following month. Purchases in May had been 140,000 and the inventory on May 31 was higher than planned at 280,000. The manager was upset because the inventory was too high. Sales are expected to be June, 320,000; July, 350,000; August, 340,000; and September, 370,000. Requirement 1. Compute the amount by which the inventory on May 31 exceeded the company's policies. Inventory on May 31 exceeded the company's policies by Requirement 2. Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases. Begin by preparing the budget schedule for purchases for June, July, and August June July August Purchases budget Ending inventory target Plus: Cost of goods sold Total inventory needed Less Beginning inventory Purchases Now prepare the budget schedule for disbursements for purchases. Now prepare the budget schedule for disbursements for purchases. June July August Disbursements for purchases 80% of last month's purchases 20% of this month's purchases Disbursements for purchases