Company expects to sell 7 comma 000 units for $ 175 each for a total of $ 1 comma 225 comma 000 in January and 2 comma 000 units for $ 225 each for a total of $ 450 comma 000 in February. The company expects cost of goods sold to average 50% of sales revenue, and the company expects to sell 4 comma 100 units in March for $ 270 each. Climber's target ending inventory is $ 12 comma 000 plus 40% of the next month's cost of goods sold. Prepare Climber's inventory, purchases, and cost of goods sold budget for January and February.

Climber Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January February Cost of goods sold 612500 225000 Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases