Jazz Futons manufactures futons. The estimated number of futon sales for the

first three months of $2022$ is as follows:

January $40,000$

February $50,000$

March $60,000$

Finished goods inventory at the end of $2021$ was $12,000$ units. On average, $25$

percent of the futons are produced during the month before they are sold, which

normally accounts for the ending balance in finished goods inventory. The

planned selling price is P$150$ per unit.

Jazz Futons buys direct materials for the futons in cloth rolls priced at P$80$ each.

Each roll provides direct material for $40$ futons. There was one roll in the direct

materials inventory at the beginning of January, and the company expects to have

four rolls in inventory at the end of the month. Assuming the production budget

calls for $60,000$ units to be produced in January, what would be the amount of

the cloth rolls direct materials purchases budget for that month?

$114,000$

$119,760$

$120,240$

$120,000$