The following information pertains to the January operating budget for Casey Corporation.

Budgeted sales for January $200,000 and February $107,000.

Collections for sales are 40% in the month of sale and 60% the next month.

Gross margin is 25% of sales.

Administrative costs are $11,000 each month.

Beginning accounts receivable is $26,000.

Beginning inventory is $15,000.

Beginning accounts payable is $68,000. (All from inventory purchases.)

Purchases are paid in full the following month.

Desired ending inventory is 25% of next month's cost of goods sold (COGS).

For January, budgeted cost of goods sold is ________.

Group of answer choices

$200,000

$150,000

$135,000

$72,600