Coronet Company provided the following information related to its inventory sale

Question

Coronet Company provided the following information related to its inventory sales and purchases for December 2009 and the first quarter of 2010:
  

    
Desired ending inventory levels are 33% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February 2010 would be:

$77,900.

$95,600.

$111,220.

$88,100. these are the answer, i've tried 68,000*.33=22440; 98,000*33=32340, I dont't know what to do?

Dec. 2009 Jan. 2010 Feb. 2010 March 2010 (Actual) (Budgeted) (Budgeted) (Budgeted)   Cost of goods sold $48,000 $78,000 $98,000 $68,000

Explanation / Answer

Budgeted purchases of inventory in February 2010 =Cost of goods sold $98,000+Ending inventory$ 22,440( 68,000*.33)-Begining inventory $32340 (98,000*33)=$88,100.

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