QS $20-30$A $($Algo$)$ Merchandising: Computing merchandise purchases LO P$4$

Montel Company's July sales budget shows sales of $$640,000.$ The company budgets beginning merchandise inventory of $$67,000$ and ending merchandise inventory of $$39,000$ 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