Answer:
expected sales January, 4,000 pairs of shoes at $165 each = $660,000
expected sales February, 2,000 pairs of shoes at $220 = $440,000
expected COGS = 75% of expected revenue
expected sales March, 4,600 pairs of shoes at $240 = $1,104,000
ending inventory = $18,000 plus 45% of next month's COGS
<h2>                   <u>Sales budget</u>   </h2>
Month                       January              February             March
Units                           4000                  2000                  4600
Price                           $165                   $220                  $240
Total sales               $660,000         $440,000         $1,104,000
                    
<h2><u>Inventory, Purchases and COGS Budget</u></h2>
                                                        January        February      March
cost of goods sold                        $495,000    $330,000     $828,000
<u>+ desired ending inventory           $166,500    $390,600           ?        </u>
Total merchandise required         $661,500     $720,600           ?
<u>- beginning inventory                   ($315,000)   ($346,500)   ($374,100)</u>
budgeted purchases                    $346,500     $374,100            ?