Packer Company expects to sell 7500 units for $ 170 each for a total of $ 1 comma 275000 in January and 3200 units for $ 200 each for a total of $ 640000 in February. The company expects the cost of goods sold to an average 60% of sales revenue, and the company expects to sell 4700 units in March for $ 200 each. Packer's target ending inventory is $ 16000 plus 60% of the next month's cost of goods sold. Prepare Packer's inventory, purchases, and cost of goods sold budget for January and February.

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