Do It! Review 9-5 Your answer is partially correct. Try again. Zeller Company estimates that 2020 sales will be $40,000 in quarter 1, $48,000 in quarter 2, and $58,000 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 10% of the next quarter's 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, 2020 Quarter 1 2 Six Months Beginning Merchandise Inventory 40,000 T 52,600 Add - Desired Ending Merchandise Inventory 4,208 4,640 Total Required Units 24,208 30,940 Less Beginning Merchandise Inventory 3,200 4,208 21,008 26,732 47,740 Required Merchandise Purchases