Based on the available information, the desired beginning inventory for June is $50,400
To determine the desired beginning inventory for June, we need to calculate the cost of goods sold and the desired ending inventory for May.
1. Calculate the cost of goods sold (COGS) for May:
COGS = Sales in May * Cost of goods sold percentage
COGS = $60,000 * 70% = $42,000
2. Calculate the desired ending inventory for May:
Desired Ending Inventory = COGS for June * 120%
Desired Ending Inventory = $42,000 * 120% = $50,400
3. Calculate the desired beginning inventory for June:
Desired Beginning Inventory = Desired Ending Inventory for May
Desired Beginning Inventory = $50,400
Therefore, the desired beginning inventory for June is $50,400.