Wildhorse Company estimates that 2020 sales will be $45,600 in quarter 1, $56,000 in quarter 2, and $65,700 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 22% of the next quarters expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2020.

WILDHORSE COMPANY Merchandise Purchases Budget For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020
	Quarter
	1		2		Six Months
Desired Ending Finished Goods InventoryDirect Materials Per UnitBudgeted Cost of Goods SoldDesired Ending Merchandise InventoryRequired Merchandise PurchasesBeginning Merchandise InventoryBeginning Direct MaterialsDirect Materials PurchasesTotal Required Units	$		$
AddLess: Required Merchandise PurchasesTotal Required UnitsBeginning Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials PurchasesDesired Ending Merchandise InventoryBudgeted Cost of Goods SoldBeginning Merchandise InventoryDirect Materials Per Unit
Direct Materials PurchasesDesired Ending Finished Goods InventoryDesired Ending Merchandise InventoryBeginning Direct MaterialsBudgeted Cost of Goods SoldTotal Required UnitsBeginning Merchandise InventoryRequired Merchandise PurchasesDirect Materials Per Unit
AddLess: Beginning Direct MaterialsTotal Required UnitsBudgeted Cost of Goods SoldDesired Ending Finished Goods InventoryDirect Materials PurchasesDesired Ending Merchandise InventoryRequired Merchandise PurchasesBeginning Merchandise InventoryDirect Materials Per Unit
Direct Materials Per UnitDirect Materials PurchasesDesired Ending Merchandise InventoryBudgeted Cost of Goods SoldRequired Merchandise PurchasesTotal Required UnitsBeginning Merchandise InventoryDesired Ending Finished Goods InventoryBeginning Direct Materials	$		$		$