July August September October
Sales 6,00,000$ 9,10,000$ 4,75,000$ 3,85,000$
Cost of Merchandise as % of Sales 45% 45% 45% 45%
Budgeted Cost of Merchandise Sold 2,70,000$ 4,09,500$ 2,13,750$ 1,73,250$
Following Month's COGS 4,09,500$ 2,13,750$ 1,73,250$
Desired Ending Inventory % 20% 20% 20%
Desired Ending Inventory Dollars 81,900 42,750 34,650
Budgeted Cost of Merchandise Sold 2,70,000 4,09,500 2,13,750 8,93,250
Plus Desired Ending Inventory 81,900 42,750 34,650
Total Inventory Needs 3,51,900 4,52,250 2,48,400
Less Beginning Inventory -50,000 -81,900 -42,750
Required Purchases 3,01,900$ 3,70,350$ 2,05,650$
Schedule of Expected Cash Disbursements - Purchases
July August September Quarter
June Purchases (A/P From Balance Sheet) 1,30,000$ 1,30,000$
July Purchases 1,50,950$ 1,50,950$ 3,01,900$
August Purchases 1,85,175$ 1,85,175$ 3,70,350$
September Purchases 1,02,825$ 1,02,825$
Total Disbursements 2,80,950$ 3,36,125$ 2,88,000$ 9,05,075$
Cost of Merchandise Sold for the Quarter 8,93,250$
Ending Inventory at the end of the Quarter 34,650$
Ending A/P at the end of the Quarter 1,02,825$
Inventory Purchase Budget
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