Stewart, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2016, 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 $10,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $200,000 during the fourth quarter. The January 1 inventory was $36,000. 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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Quarter Ended Nine-Month Total June 30 $30,000 80,000 120,000 S 100,000 150,000 March 31 Cash sales, 20% Credit sales, 80% Total sales September 30 $25,000 100,000 $125,000 75,000 300,000 $375,000 $20,000