Arete Company expects to sell 8,000 units for $155 each for a total of $1,240,000 in January and 2,300 units for $205 each for a total of $471,500 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 $280 each. Arete's target ending inventory is $15,000 plus 50% 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 January February Cost of goods sold $ 868,000 $ 330,050 180,025 446,200 Plus: Desired ending merchandise inventory Total merchandise inventory required 1,048,025 776,250 449,000 180,025 Less: Beginning merchandise inventory 599,025 $ 596,225 Budgeted purchases