Rivco Products, a wholesaler of fishing equipment, budgeted the following sales for the indicated months:

	June 20X8	July 20X8	August 20X8
Sales on account	$1,750,000	$1,930,000	$2,000,000
Cash Sales	206,000	266,000	256,000
Total Sales	$1,956,000	$2,196,000	$2,256,000

All merchandise is marked up to sell at its invoice cost plus 20 %. Target merchandise inventories at the beginning of each month are 30 % of that month's projected cost of goods sold.

1. The budgeted cost of goods sold for the month of June 20X8 is $______

Requirement 2. Compute the budgeted merchandise purchases for July 20X8. Use the following table to compute the budgeted merchandise purchases forJuly 20X8.

July Merchandise Purchases Desired ending inventory_________ Plus: Cost of goods sold__________ Total merchandise needed_________ Less: Beginning inventory___________ Required purchases________________