S 20-30A (Algo) Merchandising: Computing merchandise purchases LO P4 Montel Company's July sales budget shows sales of $650,000. The company budgets beginning merchandise Inventory of $54,000 and ending merchandise Inventory of $39,000 for July. Cost of goods sold is 30% 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. Budgeted Cost of Merchandise Purchases