S 20-30A Merchandising: Purchases budget LO P4 Montel Company's July sales budget calls for sales of $600,000. The store expects to begin July with $50,000 of inventory and to end che month with $40,000 of inventory. Gross margin is typically 40% of sales. Determine the budgeted cost of merchandise purchases wor July. MONTEL COMPANY Computation of Budgeted Cost of Purchases For Month Ended July 31 Required available merchandise Budgeted cost of purchases