The James Company, a wholesaler, budgeted the following sales for the indicated months

June 2004 July 2004August 2004

Sales on account 1800,000 1,920,000 2,040,000

Cash sales 240,000 250,000 260,000

Total sales 2,040,000 2,170,000 2,300,000

All merchandise is marked up to sell at its invoice cost plus 25%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goads sold.

Select the best answer for each of the following items from the above given information

I. The cost of goods sold for the month of June 2004 is anticipated to be

a. 1,632,000

b. 1,428,000

c. 1, 836,000

d. 1,530,000

e. None of these

II. Merchandise purchase for July 2004 are anticipated to be

1,736,000

1, 926,600

1,767,200

1,658,700

None of these