Favata Company Has the Following Information In Addition,the Cost of Goods Sold Rate Is 70% and }

Essay

Favata Company has the following information:
$$\begin{array} { l c } \text { Month } & \text { Budgeted Sales } \\\text { June } & \$ 60,000 \\\text { July } & 51,000 \\\text { August } & 40,000 \\\text { September } & 70,000 \\\text { October } & 72,000\end{array}$$ In addition,the cost of goods sold rate is 70% and the desired inventory level is 30% of next month's cost of sales.
Required:
Prepare a purchases budget for July through September.