Peabody Enterprises prepared the following sales budget:
|
Month |
Budgeted Sales |
|
March |
$6150 |
|
April |
$13236 |
|
May |
$12208 |
|
June |
$14047 |
The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month’s cost of goods sold.
What is the budgeted ending inventory for May?