Scott 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 $10,000 plus 15% of cost of goods sold for the following quarter. The marketing director expects sales of $245,000 during the fourth quarter. The January 1 inventory was $23,125.
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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Scott Electronics Sales Budget For the Nine Months Ended September 30 Quarter Nine-Month Total Sep 30 $ 50,000 $ 70,000 $ 60,000 Mar 31 Jun 30 $ 180,000 Cash sales, 40% Credit sales, 60% 105.000 $ 125,000 $175,000 $ 150,000 75.000 90.000 270.000 $ 450,000 Total sales, revenue