Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2:

	Dec. Year 1				Jan. Year 2				Feb. Year 2				Mar. Year 2
	(Actual)				(Budgeted)				(Budgeted)				(Budgeted)
Cost of goods sold	$	33,000			$	63,000			$	83,000			$	53,000

Desired ending inventory levels are 31% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:

Multiple Choice

$62,300.

$93,840.

$81,200.

$73,700.