Peabody Enterprises prepared the following sales budget:
|
Month
|
Budgeted Sales
|
|
March
|
$5809
|
|
April
|
$13392
|
|
May
|
$12272
|
|
June
|
$14039
|
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 in dollars not units?