The McGraw Company Has the Following Information Available The Cost of Goods Sold Rate Is 65% and the Month

Essay

The McGraw Company has the following information available:
$\begin{array}{ll}\text { Month }&\text { Budgeted Sales }\\\text { June } & \$ 68,000 \\\text { July } & 72,000 \\\text { August } & 74,000 \\\text { September } & 76,000 \\\text { October } & 78,000\end{array}$
The cost of goods sold rate is 65% and the desired ending inventory level is 25% of the next month's cost of sales.
Required:
Prepare a purchases and cost of goods sold budget for July,August and September.