The Pinsky Company Has the Following Information Available The Gross Profit Rate Is 40% and the Desired Ending

question 84

Essay

The Pinsky Company has the following information available:
$\begin{array}{ll}\text { Month }&\text { Budgeted Purchases }\\\text { March } & \$ 150,000 \\\text { April } & 153,000 \\\text { May } & 151,000 \\\text { June } & 254,500 \\\text { July } & 252,500\end{array}$
The gross profit rate is 40% and the desired ending inventory level is 20% of the next month's cost of sales.
Required:
Prepare a purchases and cost of goods sold budget for April,May and June.

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