Summits Company expects to sell 4,000 units for $185 each for a total of $740,000 in January and 4,500 units for $220 each for a total of $990,000 in February. The company expects cost of goods sold to average 60% of sales revenue, and the company expects to sell 4,100 units in March for $260 each. Summits' target ending inventory is $17,000 plus 50% of the next month's cost of goods sold. Prepare Summits' inventory, purchases, and cost of goods sold budget for January and February. Summits 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