Norton Company prepared the following sales budget: Month Budgeted Sales March $200,000 April 180,000 May 220,000 June 260,000 The expected gross profit rate is 40% and the inventory at the end of February was $36,000. Desired inventory levels at the end of the month are 30% of the next months cost of goods sold.

1. What is the desired beginning inventory on June 1?

2. What is the desired ending inventory on May 31?

3. What is the desired cost of goods sold for May?

4. What are the total purchases budgeted for April?

5. What are the total purchases budgeted for May?