Kingston company has the following budgeted inventory purchases: Kingston pays for inventory purchases as follows: 40% in the month of purchase. 60% in the following month. All of the inventory is purchased from Klepco.

Purchases Budget
	April	May	June	Total
Budgeted cost of goods sold	612000	864000	720000	2196000
plus desired ending inventory	86400	72000	54000	54000
Total needs	698400	936000	774000	2250000
less beginning inventory	(61200)	(86400)	(72000)	(61200)
Cost of purchases	637200	849600	702000	2188800

In May, how much will Kingston pay (in cash) for purchases? Hint: Kingston will pay for some of the May purchases and some of the April purchases. How much does Kingston owe Klepco at the end of June?