Fosnight Enterprises prepared the following sales? budget: Month Budgeted Sales
March ?$6,000
April ?$13,000
May ?$12,000
June ?$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 ending inventory on May? 31?