Gamma plc purchases material and refines it before onward sale. Budgeted sales of the refined material are as follows.

Litres

January

40,000

February

50,000

March

30,000

(i)The target month-end inventory of unrefined material is 30% of the material needed for the following month's budgeted production.

(ii)The targeted month-end inventory of refined material is 30% of next month's budgeted sales.

Calculate the budgeted purchases of unrefined material for January.

a) 56,200 litres

b) 49,750 litres

c) 48,250 litres

d) 43,300 litres