Montel Company's July sales budget shows sales of $610,000. The company budgets beginning merchandise inventory of...

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Montel Company's July sales budget shows sales of $610,000. The company budgets beginning merchandise inventory of $60,000 and ending merchandise inventory of $34,000 for July. Cost of goods sold is 20% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory) to solve for purchases. Budgeted Cost of Merchandise Purchases Montel Company's July sales budget shows sales of $610,000. The company budgets beginning merchandise inventory of $60,000 and ending merchandise inventory of $34,000 for July. Cost of goods sold is 20% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory) to solve for purchases. Budgeted Cost of Merchandise Purchases

Answer rating: 100% (QA)

Answer Requirement Calculation of the budgeted cost of merchandise purchase Budgeted cost o... View the full answer