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    production budget, purchasing budget, materials budget

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    Palermo Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $475,000 for May. Cost of goods sold is expected to be 60% of sales. The company's desired ending inventory is 20% of the following month's cost of goods sold. Compute the required purchases for April.

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    Solution Summary

    Computations are made in excel so it can serve as a template for other problems.