Aretes Company expects to sell 4,500 units for $165 each for a total of $742,500 in January and 4,000 units for $200 each for a total of $800,000 in February. The company expects cost of goods sold to average 50% of sales revenue, and the company expects to sell 4,300 units in March for $300 each. Aretes' target ending inventory is $11,000 plus 50% of the next month's cost of goods sold. Prepare Aretes' inventory, purchases, and cost of goods sold budget for January and February. Aretes Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases February