Fosnight Enterprises prepared the following sales budget:

Month	Budgeted Sales
March	$6,000
April	$13,000
May	$11,000
June	$20,000

The expected gross profit rate is

20%

and the inventory at the end of February was

$7,000.

Desired inventory levels at the end of the month are

30%

of the nextmonth's cost of goods sold.

What is the desired ending inventory on May 31?

A.

$16,000

B.

$1,200

C.

$2,640

D.

$ 4,800