Florence Marie’s Hat Shop plans to sell the following quantity of hats during the first four months of 2005.

At the beginning of January, Florence plans to have 40 hats on hand, and to maintain an ending inventory equal to 20 percent of next month’s sales.
Required: Prepare a purchases budget for the first quarter of 2005 for Florence Marie’s Hat Shop. Remember, the first quarter is January, February, and March. April sales are provided only to help compute the ending inventory for March.

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January February March April Florence pays $6 for each hat and sells them for $15. Units 200 250 300 320