Semester Case - Cowboy Ice Cream, Inc. As CIC considers expanding by adding a fixed location, W.1. realizes that budgeting properly for inventory is more important than ever. As you know from prior work, the wholesale division of CIC began January with 1.250 units of inventory at a cost of $4.00 per unit. During the first six months of the current year, CIC recorded the following transactions related to inventory for the wholesale division: Sales (units) Month Beginning inventory January February March April May June Totals 1.500 1,600 1.750 3,100 4,500 4.800 17.250 Purchases Price Ea. 1.250 $4.00 1.000 $4.50 1.200 $4.60 1,700 $4.40 2.900 $4.75 5,000 $4.85 4,500 $4.90 17,550 Total $5,000 $4,500 $5.520 $7.480 $13.775 $24.250 $22.050 $82,575 Relative to June, the company projects a 3 percent increase in cost of goods sold during July The desired ending inventory balance for July is $2.500. CIC pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of June 30 was $8.820. What is ending inventory, in dollars and units, at June 308 CIC applies the FIFO cost flow assumption. Semester Case - Cowboy Ice Cream, Inc. (cont.) b. What is costs of goods sold in total and for each of the six months ending June 302 Month Cost of Goods Sold January February March April May June Total c. Determine the amount of purchases budgeted for July. d. Determine the amount of cash payments budgeted for inventory purchases in July