The January 1, 2020 beginning inventory for Everest Supply Company was $290,000. Projections are that sales growth will be strong during 2020, so the company wants to have an ending inventory on December 31, 2020 of $360,000. If net sales for 2020 are projected to be $1,600,000, and the gross profit rate is expected to be 30%, what cost of merchandise should be purchased during 2020?

Select one:

a. $1,480,000

b. $1,120,000

c. $1,190,000

d. $1,050,000