Mountaineers Company expects to sell 8,500 units for $165 each for a total of $1,402,500 in January and 3,500 units for $180 each for a total of $630,000 in February. The company expects cost of goods sold to average 60% of sales revenue, and the company expects to sell 4,300 units in March for $260 each. Mountaineers' target ending inventory is $11,000 plus 40% of the next month's cost of goods sold. Prepare Mountaineers' inventory, purchases, and cost of goods sold budget for January and February. ***** Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases CD Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January February

Mountaineors Company expects to sell 8,500 units for $165 each for a total of $1,402,500 in January and 3,500 units for $180 each for a total of $630,000 in Fobruary. The company expects cost of goods sold to average 60% of sales revenue, and the company expects to soll 4,300 units in March for $260 each. Mountaineers' target ending inventory is $11,000 plus 40% of the next month's cost of poods sold. Prepare Mountainoers' inventory, purchases, and cost of goods sold budget for January and February. Mountaineers Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases