Seaworthy Company,a Merchandising Company,has Prepared the Following Sales Budget Cost of Goods Sold Is Budgeted at 40% of Sales,and

Seaworthy Company,a merchandising company,has prepared the following sales budget: $$\begin{array} { | l | l | } \hline \text { Month } & { \text { Budgeted Sales } } \\\hline \text { March } & \$ 400,000 \\\hline \text { April } & 207,000 \\\hline \text { May } & 241,000 \\\hline \text { Iune } & 248,000 \\\hline\end{array}$$ Cost of goods sold is budgeted at 40% of sales,and the inventory at the end of February was $34,000.Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold.What is the desired beginning inventory on June 1?

A) $24,800
B) $9640
C) $96,400
D) $9920

Correct Answer:

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