Rockgate Companys July sales budget calls for sales of $400,000. The store expects to begin July with $40,000 of inventory and to end the month with $50,000 of inventory. Gross margin is typically 30% of sales. Determine the budgeted cost of merchandise purchases for July.

	July
Budgeted Cost of Goods Sold
Plus Desired Ending Inventory
Total Inventory Needed
Less Beginning Inventory
Required Inventory Purchases

What is the budgeted cost of merchandise purchases for July?