A company purchases all merchandise on credit. It budgeted the following month-end accounts payable and merchandise inventory balances; it also budgeted cash disbursements as indicated.Compute the budgeted merchandise purchases and cost of goods sold for February.

A/P Merchandise Inventory Cash Disb.

Jan. 31 220,000 390,000 jan 1,600,000

feb. 28 240,000 305,000 feb 1,490,000

a) MERCH. PURCH $250,000; COGsold $254,000

b) MERCH. PURCH $169,000; COGsold $254,000

c) MERCH. PURCH $254,000; COGsold $169,000

d) MERCH. PURCH $269,000; COGsold $250,000

e) none of the above