Seaworthy Company, a merchandising company, has prepared the following sales budget: Month Budgeted Sales March $500,000 April 187,000 May 224,000 June 237,000 Cost of goods sold is budgeted at 50% of sales, and the inventory at the end of February was $34,000. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? A. $11,850 B. $110,500 C. $11,200 D. $23,700