Sebring Company Has the Following Data The Cost of Goods Sold Percentage Is 70% of Sales

Multiple Choice

Sebring Company has the following data:
$\begin{array}{ll}\text { Month }&\text { Budgeted Sales }\\\text { April } & \$ 40,000 \\\text { May } & 44,000 \\\text { June } & 50,000 \\\text { July } & 52,000 \\\text { August } & 48,000\end{array}$
The cost of goods sold percentage is 70% of sales and the desired ending inventory level is 25% of next month's sales at cost.________ was the beginning inventory on May 1.

A) $3,300
B) $7,700
C) $8,750
D) $11,000