Scannell, Inc. sells tire rims. Its sales budget for the nine months ended September 30,...
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Scannell, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2018, and additional information follow: EB (Click the icon to view the budget) (Click the icon to view additional information.) 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. Scannell, Inc Inventory, Purchases, and Cost of Goods Sold Budget Nine Months Ended September 30, 2018 Quarter EndedQuarter Ended Quarter Ended Nine-Month March 31 June 30 September 30 Total Plus: Less: Data Table 1 Quarter Ended Nine-Month March 31 June 30 September 30 Total Cash sales, 40% Credit sales, 60% Total sales $62,000 $82,000 $ 72,000 $ 216,000 324,000 $155,000 $ 205,000 $ 180,000 $540,000 93,000 123,000 108,000 Print Done More Info 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 $10,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $255,000 during the fourth quarter. The January 1 inventory was $16,000. Print Done
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