Arete Company expects to sell 5,000 units for $160 each for a total of $800,000 in January and 2,000 units for $230 each for a total of $460,000 in February. The company expects cost of goods sold to average 70% of sales revenue, and the company expects to sell 4,400 units in March for $270 each. Arete's target ending inventory is $9,000 plus 40% of the next month's cost of goods sold. Prepare Arete's inventory, purchases, and cost of goods sold budget for January and February Arete Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 JanuaryFebruary Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases