Tremont Inc sells tire rims. It's sales budget for the 9 month oeriod ending September 30 2014 is

QUARTER ENDED NINE MONTH

MARCH 31 JUNE 30 SEPTEMBER 30 TOTAL

CASH SALES, 20% $24,000. $34,000. $29,000. $89,000.

CREDIT SALES, 80% $96,000. $136,000. $116,000. $348,0000

TOTAL SALES $120,000. $170,000. $145,000. $435,000.

In the past, the cost of goods sold has been 40% of total sales. Management doesn't want each quarter's ending inventory to be below $20,000.00 + 10% of COGS. for the following quarter. They expect sales of $220,000.00 during the fourth quarter. The January 1 inventory was $32,000.00

1. Prepare an inventory, purchases, and COGS budget for each of the first three quarters of the year. 2. Compute the COGS for the entire 9 month period. (June purchases were $67,000.00)