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Kim Convenience store prepared the following sales budget: Month Budgeted Sales March $ 6 , 0 0 0 April $ 1 3 , 0 0

Kim Convenience store 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 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 25% of the next month's cost of goods sold.
What is the desired beginning inventory on June 1 at Kims?
$8,400
$1,120
$1,680
$2,100

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