Do It! Review 21-5

Zeller Company estimates that 2017 sales will be $44,900 in quarter 1, $52,700 in quarter 2, and $58,900 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 Quarter 1 2 Six Months $ $ $