Slate, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2018, follows:

In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $5,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $240,000 during the fourth quarter. The January 1 inventory was $38,000. 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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Nine-Month Total Quarter Ended September 30 March 31 June 30 Cash sales, 20% Credit sales, 80% Total sales $ 33,000 132,000 $ 99,000 396,000 $ 495,000 $ 28,000 $ 38,000 152,000 112,000 $ 140,000 $ 165,000 $ 190,000