Seaworthy Company,a Merchandising Company,has Prepared the Following Sales Budget Cost of Goods Sold Is Budgeted at 50% of Sales,and

Seaworthy Company,a merchandising company,has prepared the following sales budget: $$\begin{array} { | l | r | } \hline \text { Month } & \text { Budgeted Sales } \\\hline \text { March } & \$ 500,000 \\\hline \text { April } & 187,000 \\\hline \text { May } & 224,000 \\\hline \text { Tune } & 237,000 \\\hline\end{array}$$ 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) $23,700
B) $11,200
C) $110,500
D) $11,850