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

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Accounting

Montel Company's July sales budget shows sales of $640,000. The company budgets beginning merchandise inventory of $63,000 and ending merchandise inventory of $30,000 for July. Cost of goods sold is 30% 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.
\table[[MONTEL COMPANY],[Budgeted Cost of Merchandise Purchases],[For Month Ended July],[Add: Budgeted beginning inventory],[Less: Budgeted cost of goods sold]]
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