Peabody, Inc., sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July ril May June Jul Budgeted cost of goods sold $65,000 $75,000 $85,000 $91,000 Peabody had a beginning inventory balance of $3,200 on April 1 and a beginning balance in accounts payable of $15,800. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Peabody makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase Required a. Prepare an inventory purchases budget for April, May, and June Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) April May June $ 65,000 $ 75,000 85,000 65,000 75,000 85,000 65,000 $ 75,000 $ 85,000