Brownsville Novelty Store prepared the following budget information for the month of May:

• Sales are budgeted at $402,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month.
• Inventory was $100,000 on April 30; an inventory increase of $16,000 is planned for May 31.
• All inventory is marked to sell at cost plus 50 percent.
• Estimated cash disbursements for selling and administrative expenses for the month are $64,000.
• Depreciation for May is projected at $7,600.

Brownsville's budgeted cost of goods sold (CGS) in May is:

Multiple Choice

• $134,000.

• $201,000.

• $238,600.

• $284,000.

• $268,000.