The following are budgeted data for the Bingham Company, a merchandising company:
Budgeted Sales (at retail)
January $300,000
February $340,000
March $400,000
April $350,000
Cost of goods sold as a percentage of sales is 60%. The desired ending inventory is 75% of next month's sales.
Assuming that the Bingham Company had inventory on hand of $70,000 (at cost) on January 1, the purchases for January (at cost) would be:
A) $180,000
B) $250,000
C) $263,000
D) $110,000