SM7-14 (similar to) Question Help Aretes Company expects to sell 7,000 units for $185 each for a total of $1.295,000 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 5,000 units in March for $250 each Aretes' target ending inventory is $15,000 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 February Aretes Company Inventory, Purchases, and cost of Goods Sold Budget Two months Ended January 31 and February 28 January Cost of goods sold 906 500 369 200 Plus: Desired ending merchandise inventory Total merchandise inventory required 1.275,700 Less: Beginning merchandise inventory 1 Budgeted purchases