Lightning Readers sells eReaders. 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 $30,000 plus 20% 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 $15,000.
Requirement
Prepare an inventory, purchases, and cost of goods sold 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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Quarter Ended Nine-Month Total Mar 31 un 30 Sep 30 Cash sales, 30% Credit sales70% Total sales, 100% S 37,500 $ 52,500 45,000 $135,000 315,000 $0,000 22,500 05,000 $125,000 $175,000 $150,000 87,500 ,