Question: Morrison Company provided the following information for December Year 1 and the first quarter of 2020: Dec Yr 1 Jan Yr 2 Feb Yr 2 Mar Yr 2 (Actual) (Budgeted) (Budgeted) (Budgeted) Cost of Goods Sold $75,000 $85,000 $60,000 $90,000 Ending Inventory $6,800 Desired ending inventory levels are 8% of the following month's projected cost of goods sold. Budgeted purchases of inventory in January Year 2 would be: Morrison Company provided the following information for December Year 1 and the first quarter of 2020: Dec Yr 1 Jan Yr 2 Feb Yr 2 Mar Yr 2 (Actual) (Budgeted) (Budgeted) (Budgeted) Cost of Goods Sold $75,000 $85,000 $60,000 $90,000 Ending Inventory $6,800 Desired ending inventory levels are 8% of the following month's projected cost of goods sold. Budgeted purchases of inventory in January Year 2 would be: $81,000 $85,000 $83,000 $87,000