Caine had a beginning inventory balance of 3,600 on April 1 and a beginning balance in accounts payable of 14,800. The company desires to maintain an ending inventory balance equal to 10% of the next periods cost of goods sold. Caine makes all purchases on account. The company pays 50% of accountings payable in the month of purchase and the remaining 50% in the month following purchase.
Budgeted cost of goods sold April 60,000, May 70,000, June 80,000, July 86,000