Zeller Company estimates that 2020 sales will be $40,600 in quarter 1, $52,800 in quarter 2, and $61,300 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.

ZELLER COMPANY Merchandise Purchases Budget For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020June 30, 2020
	Quarter
	1		2		Six Months
Direct Materials PurchasesTotal Required UnitsDesired Ending Finished Goods InventoryDesired Ending Merchandise InventoryDirect Materials Per UnitBeginning Merchandise InventoryBudgeted Cost of Goods SoldRequired Merchandise PurchasesBeginning Direct Materials	$		$
AddLess : Desired Ending Finished Goods InventoryTotal Required UnitsBeginning Direct MaterialsDirect Materials Per UnitDirect Materials PurchasesBudgeted Cost of Goods SoldRequired Merchandise PurchasesBeginning Merchandise InventoryDesired Ending Merchandise Inventory
Direct Materials PurchasesDesired Ending Merchandise InventoryRequired Merchandise PurchasesDirect Materials Per UnitBeginning Merchandise InventoryTotal Required UnitsBudgeted Cost of Goods SoldBeginning Direct MaterialsDesired Ending Finished Goods Inventory
AddLess : Direct Materials Per UnitBeginning Merchandise InventoryDirect Materials PurchasesRequired Merchandise PurchasesBudgeted Cost of Goods SoldBeginning Direct MaterialsTotal Required UnitsDesired Ending Merchandise InventoryDesired Ending Finished Goods Inventory
Desired Ending Finished Goods InventoryBudgeted Cost of Goods SoldRequired Merchandise PurchasesBeginning Direct MaterialsDirect Materials PurchasesTotal Required UnitsDirect Materials Per UnitDesired Ending Merchandise InventoryBeginning Merchandise Inventory	$		$		$