Question: Block Company's Cost of Goods Sold is 40% of sales. Forecasted sales for the next four months are January, $45,000, February, $50,000, March, $58,000, and April, $40,000. Block's policy is to have an ending inventory of 15% of the next month's sales needs on hand. What are budgeted purchases for February?
a) $20,480
b) $20,780
c) $21,200
d) $51,200
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