Caravan Corporation Has the Following Information The Cost of Goods Sold Percentage Is 70% and the

Multiple Choice

Caravan Corporation has the following information: $\begin{array}{lr}\text { Month } & \text { Budgeted Sales } \\{may } & \$ 46,000 \\\text { June } & 50,000 \\\text { July } & 52,000 \\\text { August } & 48,000\end{array}$ The cost of goods sold percentage is 70% and the desired inventory level is 25% of next month's sales._____ was the beginning inventory for May.

A) $8,050
B) $4,025
C) $12,075
D) None of these answers is correct