Problem
Marty's Merchandise has budgeted sales as follows for the second quarter of the year:
April................. $30,000
May.................. $60,000
June.................. $50,000
• Cost of goods sold is equal to 70% of sales.
• Inventory at May 1 is budgeted to be 50,400.
• Inventory at June 1 is budgeted to be 40,000.
What are budgeted purchases for May?