Exercise 14-7 Preparing an inventory purchases budget LO 14-3

Finch Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Finchs policy is to maintain an ending inventory balance equal to 10 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $80,000.

Required

1. Complete the inventory purchases budget by filling in the missing amounts.
2. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.
3. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.

Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the inventory purchases budget by filling in the missing amounts. March $ 63,000 Inventory Purchases Budget January February Budgeted cost of goods sold $ 53,000 $ 57,000 Plus: Desired ending inventory 5,700 Inventory needed 58,700 Less: Beginning inventory 5,300 Required purchases (on account) $ 53,400 - Req A Req B and C> Complete this question by entering your answers in the tabs below. Req A Req B and C Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter. b. Cost of goods sold c. Ending inventory