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	$	39,000			$	69,000			$	89,000			$	59,000

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:

• $81,500.

• $89,000.

• $111,000.

• $66,500.