Homework: Chapter 22 Homework Save Score: 0 of 10 pts 10 of 14 (10 complete) HW Score: 58.06%, 90 of 155 pts X S22-14 (similar to) Question Help 0 Summit Company expects to sell 7,000 units for $185 each for a total of $1,295,000 in January and 5,000 units for $195 each for a total of $975,000 in February. The company expects cost of goods sold to average 60% of sales revenue, and the company expects to sell 5,000 units in March for $240 each. Summit's target ending inventory is $12,000 plus 50% of the next month's cost of goods sold. Prepare Summit's inventory, purchases, and cost of goods sold budget for January and February. Summit Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January Cost of goods sold 777,000 $ Plus: Desired ending merchandise inventory 304,500 Total merchandise inventory required 1,081,500 Less: Beginning merchandise inventory 400,500 Budgeted purchases 681,000 February 585,000 304.500