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Rundle, Inc. sells fireworks. The companys marketing director developed the following cost of goods sold budget for April, May, June, and July.

	April	May	June	July
Budgeted cost of goods sold	$77,000	$87,000	$97,000	$103,000

Rundle had a beginning inventory balance of $3,000 on April 1 and a beginning balance in accounts payable of $15,200. The company desires to maintain an ending inventory balance equal to 10 percent of the next periods cost of goods sold. Rundle makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase.

Required

1. Prepare an inventory purchases budget for April, May, and June.

2. Determine the amount of ending inventory Rundle will report on the end-of-quarter pro forma balance sheet.

3. Prepare a schedule of cash payments for inventory for April, May, and June.

4. Determine the balance in accounts payable Rundle will report on the end-of-quarter pro forma balance sheet.

Rundle, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July Budgeted cost of goods sold April $77,000 May $87,000 Jung July $97,000 $103,000 Rundle had a beginning inventory balance of $3,000 on April 1 and a beginning balance in accounts payable of $15,200. The company desires to maintain an ending inventory balance equal to 10 percent of the next period's cost of goods sold. Rundle makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Rundle will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Rundle will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April May June Budgeted cost of goods sold $ 77,000 $ 87,000 $ 97,000 Plus: Desired ending inventory 8,700 9,700 10,300 Inventory needed 85,700 96,700 107,300 Less: Beginning inventory 3000 8,700 9,700 Required purchases (on account) $ 82,700 $ 88,000 $ 97,600 Roquired A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of ending inventory Rundle will report on the end-of-quarter pro forma balance sheet. Ending inventory Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Determine the balance in accounts payable Rundle will report on the end-of-quarter pro forma balance sheet. Accounts payable

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