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