Horizon Audio Systems sells and installs car starter systems. The company’s sales budget for the fourth quarter is provided below:

Horizon Audio Systems sells and installs car starter systems.                                                        

The company’s sales budget for the fourth quarter is provided below:                                                               

                                                  October              November         December

        Budgeted Sales               $90,000             $98,000             $104,000

You can expect the company’s cost of goods sold to be 80% of sales.                                                                

The ending inventory balance each month should be 20% of the next month’s cost of goods sold.                                                                     

Based on this information, how much inventory do you need to purchase for November?           

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