ane capiating should Blake and Anna seek?
7-28 Purchases and Cost of Goods Sold
Popeil Products, a wholesaler of fishing equipment, budgeted the following sales for the indicated months:
June 20X8
Sales on account
$1,850,000
Cash sales
130,000
Total sales
$1,980,000
July 20X8
$1,920,000
156,000
$2,076,000
August 20X8
$1,910,000
274,000
$2,184,000
All merchandise is marked up to sell at its invoice cost plus 20%. Target merchandise inventories
at the beginning of each month are 25% of that month's projected cost of goods sold.
1. Compute the budgeted cost of goods sold for the month of June 20X8.
2. Compute the budgeted merchandise purchases for July 20X8.
