Prepare an operating budget

Learning Objective 6 Appendix 22A E22A-32 Preparing an operating budget Tremont, Inc. sells tire rims. Its sales budget for the nine months ended September 30,2014, follows: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 cost of goods sold for the following quarter. The marketing director expects sales of $220,000 during the fourth quarter. The January 1 inventory was S32,000. Prepare an inventor 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. Prepare an operating budget