State Logos buys logo- imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2,009,000 in September, $ 2,240,000 in October, $ 2,379,000 in November, and $ 2,520,000 in December. State Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $ 405,000 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.