Fantastic Futons manufactures futons. The estimated number of futon sales for t

Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as
follows:Finished goods inventory at the end of 2009 was 12000 units. On average 25 percent of the futons are produced
during the month before they are sold which normally accounts for the ending balance in finished goods inventory. The planned selling price is $150 per
unit.Fantastic Futons buys direct materials for the futons in cloth rolls priced at $80 each. Each roll provides direct material for 40 futons. There was
one roll in the direct materials inventory at the beginning of January and the company expects to have four rolls in inventory at the end of the month.
Assuming the production budget calls for 60000 units to be produced in January what would be the amount of the cloth rolls direct materials purchases
budget for that month? Answer $120000 $119760 $114000 $120240