Aretes Company expects to sell 8,500 units for $180 each for a total of $1,530,000 in January and 2,300 units for $220 each for a total of $506,000 in February. The company expects cost of goods sold to average 70% of sales revenue, and the company expects to sell 4,300 units in March for $280 each. Aretes' target ending inventory is $17,000 plus 40% 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 1071000 Plus: Desired ending merchandise inventory 158680 Total merchandise inventory required Less: Beginning merchandise inventory February 354200 Budgeted purchases