Executive officers of Gibson Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two different sources. Source of Estimate Sales manager Marketing consultant First Quarter $ 373,000 518,000 Second Quarter $ 317,000 459,000 Third Quarter $ 289,000 405,000 Fourth Quarter $ 487,000 642,000 Gibson's past experience indicates that cost of goods sold is about 65 percent of sales revenue. The company tries to maintain 10 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $20,000. Next year's ending inventory is budgeted to be $21,000. Required a. Prepare an inventory purchases budget using the sales manager's estimate. b. Prepare an inventory purchases budget using the marketing consultant's estimate.

Executive officers of Gibson Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two different sources. Glbson's past experience indicates that cost of goods sold is about 65 percent of sales revenue. The company tries to maintain 10 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $20,000. Next year's ending inventory is budgeted to be $21,000. Required a. Prepare an inventory purchases budget using the sales manager's estimate. b. Prepare an inventory purchases budget using the marketing consultant's estimate. Prepare an inventory purchases budget using the sales manager's estimate. Note: Round your final answers to nearest whole dollar amount. Prepare an inventory purchases budget using the marketing consultant's estimate. Note: Round your final answers to nearest whole dollar amount