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 $206,000 and February $109,000.
-Collections for sales are 50% in the month of sale and 50% the next month.
-Gross margin is 25% of sales.
-Administrative costs are $19,000 each month.
-Beginning accounts receivable is $29,000.
-Beginning inventory is $14,000.
-Beginning accounts payable is $74,000. (All from inventory purchases.)
-Purchases are paid in full the following month.
-Desired ending inventory is 20% of next month's cost of goods sold (COGS) .
At the end of January, budgeted ending inventory is ________.

A) $5,450
B) $16,350
C) $21,800
D) $30,350