Please give a step by step breakdown.

Spencer Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Spencers policy is to maintain an ending inventory balance equal to 20 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $81,000.

Required:

a.	Complete the inventory purchases budget by filling in the missing amounts.

	January	February	March
Budgeted Cost GS	51,000	55,000	61,000
Plus: Desired ending Inventory	11,000
Inventory Needed	62,000
Less: Beginning Inventory	10,200
Required Purchases on Acct	51,800

b.	Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.

Cost Of Goods Sold