Lavender Corporation manufactures Product X. Each unit of X requires 2 ounces of ‘sweet syrup’. To insure sufficient quantities of sweet syrup on hand, Lavender requires an ending inventory of sweet syrup each month equal to 30% of the following month’s needs. Beginning sweet syrup inventory on January 1st is 50,000 ounces and Lavender’s budgeted production of Product X for the first quarter of the year is:

• January 50,000 units of X
• February 90,000 units of X
• March 30,000 units of X

Lavender’s budgeted materials purchases (in ounces) for the month of January is closest to:

104,000 ounces of sweet syrup

77,000 ounces of sweet syrup

100,000 ounces of sweet syrup