4. MC Qu. 44 JT Department Store expects ...

JT Department Store expects to generate the following sales for the next three months:

July August September

Expected sales $460,000 $580,000 $620,000

JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should JT plan to purchase in August?

A. $257,400

B. $314,600

C. $352,800

D. $327,800