In May 2022, the budget committee of Blue Spruce, Inc. assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $725,000, July $970,000. 2. Cost of goods sold is expected to be 80% of sales. 3. Desired ending merchandise inventory is 30% of the following month's cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. (a) Compute the budgeted merchandise purchases for June. BLUE SPRUCE, INC. Merchandise Purchases Budget $ $

In May 2022, the budget committee of Blue Spruce, Inc. assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $725,000, July $970,000. 2. Cost of goods sold is expected to be 80% of sales. 3. Desired ending merchandise inventory is 30% of the following month's cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. (a) Compute the budgeted merchandise purchases for June. BLUE SPRUCE, INC. Merchandise Purchases Budget $ $

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 3P: Budgeted selling and administrative expenses for King Tire Co. In P7-2 for the year ended December...

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