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Zeller Company estimates that 2017 sales will be $42,800 in quarter 1, $51,300 in quarter 2, and $58,300 in quarter 3. Cost of goods sold

Zeller Company estimates that 2017 sales will be $42,800 in quarter 1, $51,300 in quarter 2, and $58,300 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 18% of the next quarters expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2017.
ZELLER COMPANY Merchandise Purchases Budget June 30, 2017For the Quarter Ending June 30, 2017For the Six Months Ending June 30, 2017
Quarter
1 2 Six Months
Required Merchandise PurchasesDesired Ending Merchandise InventoryBeginning Merchandise InventoryBeginning Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesBudgeted Cost of Goods SoldTotal Required Units $ $
AddLess: Required Merchandise PurchasesDirect Materials Per UnitBeginning Merchandise InventoryBeginning Direct MaterialsDesired Ending Merchandise InventoryDirect Materials PurchasesTotal Required UnitsDesired Ending Finished Goods InventoryBudgeted Cost of Goods Sold
Direct Materials PurchasesBudgeted Cost of Goods SoldDesired Ending Merchandise InventoryDesired Ending Finished Goods InventoryRequired Merchandise PurchasesTotal Required UnitsBeginning Merchandise InventoryDirect Materials Per UnitBeginning Direct Materials
AddLess: Direct Materials PurchasesDesired Ending Merchandise InventoryDesired Ending Finished Goods InventoryBudgeted Cost of Goods SoldTotal Required UnitsRequired Merchandise PurchasesBeginning Merchandise InventoryBeginning Direct MaterialsDirect Materials Per Unit
Beginning Merchandise InventoryBudgeted Cost of Goods SoldDirect Materials Per UnitDesired Ending Finished Goods InventoryTotal Required UnitsRequired Merchandise PurchasesDesired Ending Merchandise InventoryDirect Materials PurchasesBeginning Direct Materials $ $ $
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