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TremontTremont​, Inc. sells tire rims. Its sales budget for the nine months ended September ​30, 2018​,...

TremontTremont​,

Inc. sells tire rims. Its sales budget for the nine months ended September ​30, 2018​, and additional information​ follow:

Quarter Ended

Nine-Month

March 31

June 30

September 30

Total

Cash sales, 40%

$52,000

$72,000

$62,000

$186,000

Credit sales, 60%

78,000

108,000

93,000

279,000

Total sales

$130,000

$180,000

$155,000

$465,000

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 $20,000 plus​ 10% 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 $ 18,000.

Prepare an​ inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute the cost of goods sold for the entire​ nine-month period.

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