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Peabody Enterprises prepared the following sales budget:
March $6,046
April $13,422
May $12,086
June $14,132
The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
What is the budgeted ending inventory for May in dollars not units?

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