The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2022. Sales for May are expected to be $800,000. Sales in June and July are expected to be 5% higher than the preceding month. Cost of goods sold is expected to be 75% of sales. 1. 2. 3. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold. 4. Operating expenses are estimated to be as follows: Sales salaries $35,000 per month Advertising 6 % of monthly sales Delivery expense 2 % of monthly sales Sales commissions 5 % of monthly sales Rent expense $5,000 per month Depreciation $800 per month Utilities $600 per month Insurance $500 per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes. Prepare the merchandise purchases budget for each month in columnar form. SUPPAR COMPANY San Miguel Store Merchandise Purchases Budget For the Months of May and June, 2022 Budgeted Cost of Goods Sold Add : Desired Ending Merchandise Inventory Total Less : Beginning Merchandise Inventory Required Merchandise Purchases eTextbook and Media $ May 800000 $ $ $ June