(Answered) Company a a merchandising firm has budgeted sales for the

Accounting

Company A, a merchandising firm, has budgeted sales for the third quarter of the year:

July: .........80,000
August: .........90,000
September: .......70,000
Cost of goods sold equals 65% of sales. The company wants to maintain a monthly ending inventory equal to 130% of the cost of goods sold for the following month. The inventory on June 30th is less than this ideal since it is only 65,000. The company is now preparing a merchandise budget.
Calculate the following:

a. What are the budgeted purchases for July?

b. What is the desired inventory for September?

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