Refer to the ff. narrative for #9 to 12 Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March April $280,000 $400,000 $600,000 $300,000 $200,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the mood following sale. The accounts receivable at December 31 are a result of December credit sales. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.) Monthly expenses are budgeted as follows: salaries and wages. $27.000 per month: advertising $70.000 per month: shipping. 5 of sales: other expenses. 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter will be $42.000 for the quarter. Each month's ending inventory should equal 25% of the following month's cost of goods sold. Raw materials purchases budget: March January 5240,000 February $360,000 Quarter $780,000 30.000 Budgeted cost of goods sold.... Add desired ending materials Inventory... Total needs.. Less beginning materials inventory Required purchases 90.000 330,000 45.000 405,000 30.000 810,000 45.000 60.000 $220.000 60,000 $750,000 $315.000 9. What is beginning Inventory for February? a. $90,000 b. $165,000 c. $180,000 d. $210,000 10. What is the budgeted COGS for March? a. $90,000 b. $165,000 c. $180,000 d. $210,000 11. What is the total needs for March? a. $90,000 b. $165,000 c. $180,000 d. $210,000 12. What are required purchases for March? a. $90,000 b. $165,000 c. $180,000 d. $210,000