Zeller Company estimates that 2020 sales will be $40,000 in quarter 1, $52,600 in quarter 2, and $58,000 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 16% of the next quarter's expected cost of goods sold. Prepare merchandise purchases budget by quarter for the first 6 months of 2020.

ZELLER COMPANY Merchandise Purchases Budget For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020June 30, 2020
	Quarter
	1		2		Six Months
Budgeted Cost of Goods SoldDesired Ending Finished Goods InventoryBeginning Merchandise InventoryBeginning Direct MaterialsTotal Required UnitsDirect Materials Per UnitDesired Ending Merchandise InventoryDirect Materials PurchasesRequired Merchandise Purchases	$		$
AddLess: Budgeted Cost of Goods SoldDesired Ending Finished Goods InventoryDirect Materials PurchasesBeginning Merchandise InventoryDirect Materials Per UnitTotal Required UnitsRequired Merchandise PurchasesBeginning Direct MaterialsDesired Ending Merchandise Inventory
Direct Materials Per UnitDirect Materials PurchasesDesired Ending Finished Goods InventoryBeginning Direct MaterialsDesired Ending Merchandise InventoryTotal Required UnitsRequired Merchandise PurchasesBeginning Merchandise InventoryBudgeted Cost of Goods Sold
AddLess: Required Merchandise PurchasesBeginning Merchandise InventoryBeginning Direct MaterialsDirect Materials Per UnitTotal Required UnitsDirect Materials PurchasesDesired Ending Finished Goods InventoryDesired Ending Merchandise InventoryBudgeted Cost of Goods Sold
Direct Materials Per UnitBeginning Direct MaterialsBeginning Merchandise InventoryDesired Ending Finished Goods InventoryTotal Required UnitsRequired Merchandise PurchasesDesired Ending Merchandise InventoryBudgeted Cost of Goods SoldDirect Materials Purchases	$		$		$