Montel Company's July sales budget calls for sales of $580,000. The store expects to begin July...

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Montel Company's July sales budget calls for sales of $580,000. The store expects to begin July with $57,000 of inventory and to end the month with $30,000 of inventory. Gross margin is typically 40% of sales. Determine the budgeted cost of merchandise purchases for July. MONTEL COMPANY Computation of Budgeted Cost of Purchases For Month Ended July 31 $ Budgeted beginning inventory Budgeted cost of goods sold Required available merchandise Budgeted beginning inventory Budgeted cost of purchases 580,000 232,000 812,000 30,000 Montel Company's July sales budget calls for sales of $580,000. The store expects to begin July with $57,000 of inventory and to end the month with $30,000 of inventory. Gross margin is typically 40% of sales. Determine the budgeted cost of merchandise purchases for July. MONTEL COMPANY Computation of Budgeted Cost of Purchases For Month Ended July 31 $ Budgeted beginning inventory Budgeted cost of goods sold Required available merchandise Budgeted beginning inventory Budgeted cost of purchases 580,000 232,000 812,000 30,000

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