Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $70,000.

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What would be the required purchases (on account) for December?

A. $47,000 B. $50,000 C. $53,000

D. $60,500

Show working please

Budgeted Cost of Goods Sold Plus: Desired Ending Inventory Inventory Needed Less: Beginning Inventorv Required purchases (on account) October 60,000 6,000 66,000 9,000 57,000 November 40,000 December 50,000