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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

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

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