Question: Purchases and Cost of Goods Sold Popeil Products, a wholesaler of fishing equipment, budgeted the following sales for the indicated months:
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.