Beridze Manufacturing expects to produce 2,400 units in January and 3,500 units in February. Beridze budgets $50 per unit for direct materials. The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation.

The balance in the Raw

Materials Inventor account (all direct materials) on January 1 is $38,850. Beridze desires the ending balance in Raw Materials Inventory to be 30% of the next month's

direct materials needed for production. Desired endinq balance for February is $51,700. What is the cost of budgeted purchases of direct materials needed

for January?

A. $117,150

B. $133,650

C. $172,500

D. $120,000