Summits Company expects to sell $7,500$ units for $$170$ each for a total of $$1,275,000$ in January and $4,000$ units for $$205$ each for a total of

$$820,000$ in February. The company expects cost of goods sold to average $70\%$ of sales revenue, and the company expects to sell $4,600$ units in

March for $$300$ each. Summits Company's target ending inventory is $$12,000$ plus $40\%$ of the next month's cost of goods sold. Prepare

Summits Company's 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 $28$