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Use the following facts for problems 4 - 6: Argyle Company forecasts sales of $20,000 in January, $30,000 in February, $40,000 in March, and $50,000 in April. The inventory balance at January 1 is $6,000. Cost of goods sold is budgeted at 50% of sales revenue. Argyle wishes to have inventory levels at the end of each month equal to 35% of the cost of goods sold of the next month, plus a "safety cushion" of $2,000. Use the grid below for your calculations: Re SALES BUDGET Total Sales Inventory, Purchases and COGS Budget Cost of Goods Sold Desired Ending Inventory Total Inventory Required Less: Beginning Inventory = Purchases Required JANUARY FEBRUARY $20,000 $30,000 JANUARY FEBRUARY MARCH $40,000 MARCH 4) How much should be budgeted for inventory purchases in January? 5) How much should be budgeted for inventory purchases in February? 6) How much should be budgeted for inventory purchases in March? APRIL $50,000 APRIL

Use the following facts for problems 4-6: Argyle Company forecasts sales of $20,000 in January, $30,000 in February, $40,000 in March, and $50,000 in April. The inventory balance at January 1 is $6,000. Cost of goods sold is budgeted at 50% of sales revenue. Argyle wishes to have inventory levels at the end of each month equal to 35% of the cost of goods sold of the next month, plus a "safety cushion" of $2,000. Use the grid below for your calculations: 4) How much should be budgeted for inventory purchases in January? 5) How much should be budgeted for inventory purchases in February? 6) How much should be budgeted for inventory purchases in March

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