Company XYZ is a merchandising business. The company is specialized in selling a specific brand of smartphones. The purchase cost per unit was $260. The Company estimates that the total sales for January and February are $100,000 and $500,000 respectively. The budgeted cost of goods sold is 65% of same month sales. The company desires an ending inventory of 20% of next month cost of goods sold. The beginning inventory in January was $50,000. Calculate the cost of purchases in February a. $390,000 b. $325,000 c. $275,000 X d. None of the given answers e. $340,000