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The McGraw Company has the following information available:
Month Budgeted Sales
June $68,000
July 72,000
August 74,000
September 76,000
October 78,000
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.
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