Answer:
1. Computation of Budgeted amount of Merchandise Purchases
Particulars June July August
Ending Accounts Payable $130,000 $300,000 $120,000
Payments on account <u>$1,500,000 </u> <u>$1,400,000</u> <u>$1,400,000</u>
$1,630,000 $1,700,000 $1,520,000
Beginning Accounts Payable <u>$150,000 </u> <u>$130,000 </u> <u>$300,000 </u>
Purchases <u>$1,480,000</u> <u>$1,570,000</u> <u>$1,220,000</u>
2. Computation of Budgeted amount of Cost of Goods Sold
Particulars June July August
Beginning inventory $260,000 $500,000 $300,000
Purchases <u>$1,480,000</u> <u>$1,570,000</u> <u>$1,220,000</u>
Cost of goods AFS $1,740,000 $2,070,000 $1,520,000
Ending Inventory <u>$500,000 </u> <u>$300,000 </u> <u>$330,000</u>
Cost of goods sold <u>$1,240,000</u> <u>$1,770,000</u> <u>$1,190,000</u>
