Upstairs Company Has the Following Data The Gross Profit Rate Is 40% of Sales and Ending

Multiple Choice

Upstairs Company has the following data:
$\begin{array}{ll}\text { Month }&\text { Budgeted Sales }\\\text { January } & \$ 108,000 \\\text { February } & 132,000 \\\text { March } & 144,000 \\\text { April } & 120,000\end{array}$
The gross profit rate is 40% of sales and ending inventory at December 31 was $19,440.Desired ending inventory levels are 30% of next month's sales at cost.What are the expected total purchases for February?

A) $79,200
B) $81,360
C) $102,960
D) $105,120