*Do It! Review 21-5

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Zeller Company estimates that 2017 sales will be $43,200 in quarter 1, $51,300 in quarter 2, and $63,000 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 12% 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

[Entry field with correct answer] For the Six Months Ending June 30, 2017

Quarter

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2

Six Months

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[Entry field with correct answer] Desired Ending Merchandise Inventory

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[Entry field with correct answer] Total Required Units

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[Entry field with correct answer] Required Merchandise Purchases

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Question Attempts: 1 of 3 used