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Smith Electronics sells tablets. Its sales budget for the nine months ended September 30 follows: (Click the icon to view the budget.) (i) (Click the icon to view additional information.) Prepare a cost of goods sold, inventory, and purchases budget for each of the first three quarters of the year. Requirement Compute cost of goods sold for the entire nine-month period. (Round amounts to the nearest whole dollar.) Data table 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 10% 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 $28,750. Cost of Goods Sold, Inventory, and Purchases Budget