Ronco Products, a wholesaler of fishing equipment, budgeted the following sales for the indicated months:

All merchandise is marked up to sell at its invoice cost plus 25 per cent. Target merchandise inventories at the beginning of each month are 30 per cent of that month’s projected cost of goods sold.

1. Compute the budgeted cost of goods sold for the month of June 20X8.

2. Compute the budgeted merchandise purchases for July 20X8.

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Sales on account Cash sales Total sales June 20X8 €1,820,000 280,000 €2,100,000 July 20X8 €1,960,000 240,000 €2,200,000 August 20X8 €2,100,000 260,000 €2,360,000