Spelling Company has the following sales projection (in units) for the next six months: Feb: 9000 Mar: 10500 Apr: 8000 May: 11500 Jun: 9500 Jul: 7000 Each unit sells for $30. Spelling has prepared the following sales budget for the quarter of April, May and June:

Sales Budget
	April	May	June	Total
Sales in units	8000	11500	9500	29000
Selling price per unit	x $30	x $30	x $30
Sales revenue	$240000	$345000	$285000	$870000

Spelling's cost of goods sold is 60% of its sales revenue. The company has a policy that it keeps 10% of next months budgeted cost of goods sold as ending inventory. The company had exactly the budgeted amount of inventory on hand at April 1. Prepare a purchases budget on paper or, PREFERABLY, in Excel for the quarter of April, May and June. (If you build your schedule using formulas in excel, multiple attempts will be much faster.) 1. What is the cost of inventory at April 1 (Beginning inventory) 2. What is the budgeted cost of purchases in June? 3. What is the desired cost of inventory at the end of the quarter?