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

	December Year 1 (Actual)	January Year 2 (Budgeted)	February Year 2 (Budgeted)	March Year 2 (Budgeted)
Cost of goods sold	$ 37,000	$ 67,000	$ 87,000	$ 57,000

Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:

Multiple Choice

$65,100.

$79,500.

$105,120.

$86,400