Slate Electronics sells tablets. Its sales budget for the nine months ended September 30 follows:

Slate Electronics

Sales Budget

For the Nine Months Ended September 30

Quarter Ended

Mar 31 Jun 30 Sep 30 Nine-Month Total

Cash sales, 40%. . . . .	$52,000	$72,000	$62,000	$186,000

Total sales, 100%. . . . .	$130,000	$180,000	$155,000	$465,000

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

Slate Electronics

Cost of Goods Sold, Inventory, and Purchases Budget

For the Nine Months Ended September 30

Quarter Ended

Mar 31 Jun 30 Sep 30 Nine-Month Total

Cost of goods sold

Plus: Desired ending inventory

Total inventory required

Less: Beginning inventory

Credits sales, 60%. . . .	78,000	108,000	93,000	279,000

In the past, the cost of goods sold has been 60% 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 20%of the cost of goods sold for the following quarter. The marketing director expects sales of $230,000 during the fourth quarter. The January 1 inventory was $25,600.