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In May 2020, the budget committee of Big Jim Stores assembles the following data for...

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Accounting

In May 2020, the budget committee of Big Jim Stores assembles the following data for preparing the merchandise purchases budget for the month of June:

1. Expected sales: June $482,000; July $575,000.
2. Cost of goods sold is expected to be 75% of sales.
3. Desired ending merchandise inventory is 30% of the following months cost of goods sold.
4. The beginning inventory at June 1 will be the desired amount.

Calculate the budgeted merchandise purchases for June.

Budgeted merchandise purchases $

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Prepare the budgeted income statement for June through gross profit on sales.

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