Litzinger Corporation makes one product. The ending raw materials inventory should equal 20% of the following months raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $1.00 per pound. The company estimates that it will need 53,720 pounds of raw material to satisfy production needs in June. The raw materials inventory balance at the end of May should be closest to:

Multiple Choice

$7,984

$42,680

$50,664

$10,744