Wallace Company provides the following data for next year:

Month	Budgeted Sales
January	$120,000
February	108,000
March	136,000
April	152,000

The gross profit rate is

35%

of sales. Inventory at the end of December is

$24,600

and target ending inventory levels are

30%

of next month's sales, stated at cost.

What is the amount of purchases budgeted for January?

Question content area bottom

Part 1

A.

$56,940

B.

$78,000

C.

$74,460

D.

$99,060