Production Manager, Sally, at Armidale Innovations is making a budget for the raw materials purchases for 2017. She acquired the following budgeted sales information for 2017 from the Sales Manger, Joe:

                      Month                                                Budgeted Sales $

                      June                                                    57,000

                      July                                                      48,000

                      August                                                37,000

                     September                                            67,000

                    October                                                 69,000

As per the information obtained from the Operations Manager, Kelly, the cost of goods sold rate for the company is 69% and the desired ending inventory level for each month is 31% of next month's cost of goods sold figure.

Required: Make a ‘purchases budget’ for July, August and September, 2017, showing the total for the three months in the ‘total’ column. Must use the following format/table (show supporting calculations/working separately before or after the format/table): Round all figures to the nearest dollar.

                                                                                     Purchases budget

                                                                                 July                      Aug             Sept            

Total Cost of Goods Sold……………………

Ending inventory (desired level)………

Total needed…………………….

Beginning inventory…………………..

Total purchases…………………