QS 20-30A (Algo) Merchandising: Computing merchandise purchases LO P4 Montel Companys July sales budget shows sales of $560,000. The company budgets beginning merchandise inventory of $60,000 and ending merchandise inventory of $32,000 for July. Cost of goods sold is 40% 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.