Ace Electronics sells tablets. Its sales budget for the nine months ended September 30 follows:

In the past, cost of goods sold has been 70% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $20,000 plus 15% of cost of goods sold for the following quarter. The marketing director expects sales of $225,000 during the fourth quarter. The January 1 inventory was $33,125.
Requirement
Prepare a cost of goods sold, inventory, and purchases budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period.

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Ace Electronics Sales Budget For the Nine Months Ended September 30 Quarter Ended Nine-Month Total Mar 31 $ 50,000 Sep 30 Jun 30 Cash sales, 40% $ 70,000 $ 60,000 $180,000 Credit sales, 60%. 75,000 105,000 90,000 270,000 Total sales, 100% $125.000 $175.000 $150.000 $450.000