THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 109 AND 110. Wallace Company provides the following data for next year: Month Budgeted Sales January $120,000 February 108,000 March 132,000 April 144,000 The gross profit rate is 40% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 30% of next month's sales, stated at cost. 109. Purchases budgeted for January total a. $130,800. b. $72,000. c. $69,840. d $74,160