1. Hickory Furniture Company paid the following costs during the month of May: 
2. 
   
3. Inventory purchases $40,000; 
4. Advertising costs $8,000; 
5. Shipping costs $2,000. 
6. Hickory sold $32,000 of inventory and agreed to pay warranty fees for his customers. 
7. These are expected to be $1,600 and occur evenly over the next four months (i.e, starting in June). 

What is the amount of Hickory's May expenses when applying the equalizing principle?