Chapter 22, Problem 30QS

To determine

Concept Introduction:

Budgeted cost of Merchandise:

Budgeted cost of Merchandise are the estimates of purchases cost of a particular month based on the budgeted cost of goods sold and ending inventory and the budgeted beginning inventory.

  $Budgeted\text{ cost }ofmerchandise=Budgeted\cos tofgoodssold+Endinginventory–Beginninginventory$

This is how we calculate budgeted purchases for a particular month.

Requirement:

Budgeted cost of Merchandise purchases for July