Vernon Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Vernons policy is to maintain an ending inventory balance equal to 20 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $77,000.

Required

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

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

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

Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March Budgeted cost of goods sold $ 58,000 $ 62,000 $ 68,000 Plus: Desired ending inventory 12,400 Inventory needed 70,400 75,600 Less: Beginning inventory 11,600 12,400 13,600 Required purchases (on account) 58,800 $ 63,200 Req A Req B and C Determine the amount of cost of goods sold the comp Determine the amount of ending inventory the compa quarter. b. $ 188,000 Cost of goods sold Ending inventory c