May Corporation, a merchandising firm, has budgeted sales as follows for the third quarter of the year:
July $80,000
August $90,000
September $70,000
Cost of goods sold is equal to 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 30 is less than this ideal since it is only $65,000. The company is now preparing a Merchandise Purchases Budget.
Required:
a. The budgeted purchases for July are .

Purchases= $63,050

Explanation:

Giving the following information:

Sales:

July $80,000

August $90,000

September $70,000

The cost of goods sold is equal to 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 30 is less than this ideal since it is only $65,000.

To calculate the purchases for July, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

Purchases= 80,000*0.65 + (90,000*0.65)*1.3 - 65,000

Purchases= $63,050

answer; /// the correct answer is (10) days; /// good luck

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.