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.

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

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

Multiple Choice

$47,000

$50,000

$53,000

$60,500