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 15 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $76,000.

		Jan	Fed	Mar
	Budgeted cost	50,000	54,000	60,000
	Plus Desired ending inventory	8,100
	Inventory needed	58,100
	Less Beginning inventory	7,500
	required purchases on account	50,600

Required:

a.

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

b.

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

c.

Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.