Lakeside Home Furnishings has budgeted sales for leather chairs. July budgeted sales total $50,000, and August budgeted sales are $70,000. Desired ending inventory is expected to be 20% of next month's cost of sales, and the gross profit rate is 40%

Determine the desired ending inventory for July and beginning inventory for July.

A) $8,400, $6,000

B) $10,200, $6,000

C) $8,400, $9,000

D) $10,200, $4,000