Carlton Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,007,000 in September, $2,200,000 in October, $2,377,000 in November, and $2,500,000 in December. Carlton Logos sets its prices to earn an average 40% gross profit on sales revenue. The company does not want inventory to fall below $415,000 plus 20% of the next month's cost of goods sold.
Requirement
Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November.