Precious Stones Limited is a retail jeweler. Most of the firm's business is in jewelry and watches. The firm's average gross profit ratio for

jewelry and watches is $71\%$ and $42\%,$ respectively. The sales forecast for the next two months for each product category is as follows:

The company's policy, which is expected to be achieved at the end of April, is to have ending inventory equal to $160\%$ of the next

month's cost of goods sold.

Required:

a$.$ Calculate the cost of goods sold for jewelry and watches for May and June.

b$.$ Calculate a purchases budget, in dollars, for each product for the month of May.

Complete this question by entering your answers in the tabs below.

Required $A$

Calculate the cost of goods sold for jewelry and watches for May and June.

Note: Do not round intermediate calculations.