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Fanning Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following...

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Accounting

Fanning 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 20 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $83,000.

A)Complete the inventory purchases budget by filling in the missing amounts.
Jan Feb Mar
Budgeted Cost of Goods Sold $58,000 $62,000 $68,000
Plus: Desired ending inventory $12,400
Inventory Needed $70,400
Less: Beginning Inventory $11,600
Required Purchases (on account) $58,800

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