Seaworthy company a merchandising company has prepared the following sales budget:
Month Budgeted sales
March. 200,000
April. 208,000
May. 220,000
June. 245,000
Cost of goods sold is budgeted at 60% of sales and the inventory at the end of February was $35,000. Desired inventory levels at the end of each month are 20% of the next months cost of goods sold. What is the desired beginning inventory on June 1st?
