Answer:
Budgeted amounts: June July August
1. Purchases $1,480,000 $1,570,000 $1,220,000
2. Cost of goods sold $1,240,000 $1,770,000 $1,190,000
Explanation:
The computations are shown below:
1.
Budgeted amounts: June July August
Ending accounts payable $130,000 $300,0000 $120,000
Payments on account $1,500,000 $1,400,000 $1,400,000
Subtotal $1,630,0000 $1,700,000 $1,520,000
Beginning accounts payable ($150,000) ($130,000) $300,000)
Purchases $1,480,000 $1,570,000 $1,220,000
2.
Budgeted amounts: June July August
Beginning inventory $260,000 $500,000 $300,000
Purchases $1,480,000 $1,570,000 $1,220,000
Cost of goods available for sale $1,740,000 $2,070,000 $1,520,000
Ending inventory (500,000) (300,000) (330,000)
Cost of goods sold $1,240,000 $1,770,000 $1,190,000
