Spelling Company has the following sales projection (in units) for the next six months: Feb: 2300 Mar: 2500 Apr: 2100 May: 2800 Jun: 2400 Jul: 1900 Each unit sells for $20. Spelling has prepared the following sales budget for the quarter of April, May and June: Sales Budget April May June Total Sales in units 2100 2800 2400 7300 Selling price per unit x $20 x $20 x $20 Sales revenue $42000 $56000 $48000 $146000 Spelling's cost of goods sold is 60% of its sales revenue. The company has a policy that it keeps 30% 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.) What is the cost of inventory at April 1 (Beginning inventory) Hint: This is the same as budgeted inventory at 3/31. According to the rule that is April COGS x 30%. What is the budgeted cost of purchases in May? What is the desired cost of inventory at the end of the quarter? Hint: According to the rule that is July COGS x 30%.