Scannell, Inc. sells tire rims. Its sales budget for the nine months ended September $30,2024,$ and additional information follow:

$($Click the icon to view the budget.$)$

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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.

Scannell, Inc.

Data table

$\backslash$table$[[,$Quarter Ended,$\backslash$table$[[$Nine$-$Month$],[$Total$]]],[-,,$arch$31,$June $30,$September $30],[$Cash sales, $20\%,$$$,20,000$$$,30,000$$$,25,000s,75,000],[$Credit sales, $80\%,,80,000,120,000,100,000,300,000],[$Total sales,$$,100,000$$$,150,000$$$,125,000$$$,375,000]]$

More info

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 $$35,000$ plus $10\%$ of cost of goods sold for the following quarter. The marketing director expects sales of $$200,000$ during the fourth quarter. The January $1$ inventory was $$35,000.$