Craftco has prepared the following sales budget:

Month Budgeted Sales April $ 200,000 May 180,000 June 220,000 July 260,000 Cost of goods sold is budgeted at 60% of sales and the inventory at the end of March was $36,000. Desired inventory levels at the end of each month are 20% of the next month's cost of goods sold. What is the desired beginning inventory on July 1?

Multiple Choice

• $52,000
• $26,400
• $43,200
• $31,200
• None of these amounts is correct.