Green Lighting Supply plans inventory levels (at cost) at the end of each month as follows: May, $271,000;

June, $226,000; July, $209,000; a

$241,000. Sales are expected to be June, $449,000; July, $359,000; and August, $306,000. Cost of goods sold is 65% of sales. Purchases in
$258,000 and in May they were $188,000. Payments for each month’s purchases are made as follows: 15% during that month, 70% the next
the final 15% the next month. Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases.
 june
Sales 449000
Ending inventory 226000
beginning inventory 271000
Cogs 291850
purchases

payments
purchases 246850
Purchase schedule
Purchases = Cost of goods sold add Ending inventory less Beginning inventory
june
Cost of goods sold 65% of sales $ 291,850
add: ending inventory $ 226,000
less: bginning inventory $ 271,000
Purchases $ 246,850

Disbursement schedule
june
15% in the same month $ 37,028
(15 % * $ 246,850)
70 % in the next month $ 131,600
(70% of $ 188,000 may purchases)
15% in the next to next month $ 38,700
(15 % * $ 258,000 april purchases)

$ 207,328
july august april
359000 306000
209000 241000
226000 209000
233350 198900
258000

216350 230900 258000

july
$ 233,350
$ 209,000
$ 226,000
$ 216,350
august
$ 198,900
$ 241,000
$ 209,000
$ 230,900

july
$ 32,453
(15 % * $ 216,350)
$ 172,795
(70 % * $ 246,850 june purchases)
$ 28,200
(15% of $ 188,000 may purchases)
august
$ 34,635 38700
(15 % * $ 230,900)
$ 151,445
(70 % * $ 216,350 july purchases)
$ 37,028
(15 % * $ 246,850 june purchases)

$ 233,448 $ 223,108
may

271000

188000

188000

28200

180600