Chapter 22, Problem 31E Bookmark Show all steps: ON Preparing an operating budget-inventory, purchases, and cost of goods sold budget Slate, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2018, follows: Nine-Month Total March 31 September 30 Cash sales, 20% Credit sales, 80% Total sales $ 28,000 112,000 $ 140,000 Quarter Ended June 30 538,000 152,000 $ 190,000 $ 33,000 132,000 $ 165,000 599,000 396,000 5495,000 Sales 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 $5,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $240,000 during the fourth quarter. The January 1 inventory was $38,000. 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