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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%

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 beginning inventory on June 1?

A.

$1,680

B.

$840

C.

$9,800

D.

$1,960

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