Muddy Waters Industries has projected sales of its product for the next 6 months:

3.Muddy Waters Industries has projected sales of its product for the next 6 months:

January300 units

February700 units

March1,000 units

April900 units

May 400 units

June300 units

Each unit is sold at $40 per unit. The cost of goods sold is typically 40% of the month’s budgeted sales revenue. Muddy Waters tries to maintain a Finished Goods ending inventory equal to the 60% of next month’s cost of goods sold. January beginning inventories are expected to conform to company policy.  Prepare a purchase budget for March, and April