Designer Lighting Company sells lamps and other lighting fixtures. The purchasing department man¬ ager prepared the following inventory purchases budget. Designer Lighting’s policy is to maintain an ending inventory balance equal to 10 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is \($90,000\) .

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.

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January February March Budgeted cost of goods sold $75,000 $80,000 $86,000 Plus: Desired ending inventory 8,000 ? ? Inventory needed 83.000 ? ? Less: Beginning inventory 16,000 ? ? Required purchases (on account) $67,000 $80,600 $86,400