Question - Fosnight Enterprises prepared the following sales budget:
March Budgeted Sales: $6,000
April Budgeted Sales: $13,000
May Budgeted Sales: $12,000
June Budgeted Sales: $14,000
The expected gross profit rate is 30% 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 desired beginning inventory on June 1?