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	520000	800000	640000	1960000
plus desired ending inventory	80000	64000	44000	44000
Total needs	600000	864000	684000	2004000
less beginning inventory	(52000)	(80000)	(64000)	(52000)
Cost of purchases	548000	784000	620000	1952000

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