The Following Information Pertains to the January Operating Budget for Casey

The following information pertains to the January operating budget for Casey Corporation.
-Budgeted sales for January $200,000 and February $107,000.
-Collections for sales are 40% in the month of sale and 60% the next month.
-Gross margin is 25% of sales.
-Administrative costs are $11,000 each month.
-Beginning accounts receivable is $26,000.
-Beginning inventory is -15,000.
-Beginning accounts payable is $68,000. (All from inventory purchases.)
-Purchases are paid in full the following month.
-Desired ending inventory is 25% of next month's cost of goods sold (COGS) .
For January, budgeted cost of goods sold is ________.

A) $200,000
B) $150,000
C) $135,000
D) $72,600