Metro, Inc. sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 15% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $75,000.

Sales January February March Budgeted cost of goods sold $ 42,500 $ 55,000 $ 62,500 Plus: Desired ending inventory 8,250 Inventory needed 50,750 Less: Beginning inventory (8,500 ) Required purchases $ 42,250 Based on this information the total amount of expected purchases for February is

Multiple Choice

$42,250.

$64,375.

$56,125.

None of the answers is correct.