Walsh has budgeted sales as follows for the second quarter of the year:
April $ 30,000
May $ 60,000
June $ 50,000
Cost of goods sold is equal to 70% of sales. The company wants to maintain a monthly ending inventory equal to 120% of the cost of goods sold for the following month. The inventory on March 31 was below this target and was only $22,000. The company is now preparing a Merchandise Purchases Budget for April, May, and June.
The desired beginning inventory for June is:
Select one:
a.
$38,000
b.
$50,000
c.
$42,000
d.
$35,000