In May 2022, the budget committee of Concord Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.1. **Expected Sales**: June $430,000, July $516,000.2. **Cost of Goods Sold Expectation**: 75% of sales.3. **Desired Ending Merchandise Inventory**: 30% of the following (next) month's cost of goods sold.4. **Beginning Inventory**: At June 1 will be the desired amount.### (a) Compute the Budgeted Merchandise Purchases for June.The section contains a form for input data related to the Merchandise Purchases Budget for Concord Stores, with input boxes for various calculations, including amounts in dollars. There are several dropdown menus and boxes, suggesting input requirements for structured data entry and budget computations.

Required merchandise purchases = Cost of goods sold - Beginning merchandise inventory + Ending merchandise inventoryBudgeted cost of goods sold = Expected sales in June × 75%= $430,000 × 75%= $322,500Ending inventory for June = $516,000 × 75%×30%= $116,100Beginning inventory for June = $430,000×75%×30%= $96,750Required merchandise purchase budgetBudgeted cost of goods sold $322,500Add: Desired ending inventory$116,100TotalLess: Beginning merchandise inventory($96,750) Required merchandise purchases$341,850

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In May 2022, the budget committee of Concord Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. 2. 3. 4. (a) Expected sales: June $430,000, July $516,000. Cost of goods sold is expected to be 75% of sales. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. The beginning inventory at June 1 will be the desired amount. Compute the budgeted merchandise purchases for June. CONCORD STORES Merchandise Purchases Budget $ $

In May 2022, the budget committee of Concord Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. 2. 3. 4. (a) Expected sales: June $430,000, July $516,000. Cost of goods sold is expected to be 75% of sales. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. The beginning inventory at June 1 will be the desired amount. Compute the budgeted merchandise purchases for June. CONCORD STORES Merchandise Purchases Budget $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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