The McGrath Company has prepared a sales budget of 42,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on hand at December 31 and has a target finished-goods inventory of 15,000 units at the end of the succeeding quarter.

It takes 3 gallons of direct materials to make one unit of finished product. The company has an inventory of 61,000 gallons of direct materials at December 31 and has a target ending inventory of 53,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should McGrath Company purchase during the 3 months ending March 31?

Group of answer choices

185,000

44,000

132,000

124,000

ABC Company provides the following data for next year:

Month Budgeted Sales

January $147,000

February $174,000

March $140,000

April $120,000

The gross profit rate is 30% of sales. Inventory at the end of December is $26,900 and target ending inventory levels are 5% of next month's sales, stated at cost. What is the amount of purchases budgeted for January?

Group of answer choices

$91,910

$82,090

$102,900

$123,710