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Jazz Futons manufactures futons. The estimated number of futon sales for the first three...

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Accounting

Jazz Futons manufactures futons. The estimated number of futon sales for the
first three months of 2022 is as follows:
January 40,000
February 50,000
March 60,000
Finished goods inventory at the end of 2021 was 12,000 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 P150 per unit.
Jazz Futons buys direct materials for the futons in cloth rolls priced at P80 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 60,000 units to be produced in January, what would be the amount of
the cloth rolls direct materials purchases budget for that month?
114,000
119,760
120,240
120,000
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