Montel Companys July sales budget calls for sales of $ 600,000. The store expects to begin July

Question:

Montel Company’s July sales budget calls for sales of $ 600,000. The store expects to begin July with $ 50,000 of inventory and to end the month with $ 40,000 of inventory. Gross margin is typically 40% of sales. Determine the budgeted cost of merchandise purchases for July.