Norton Manufacturing Expects to Produce 2,900 Units in January and 3,600

Norton Manufacturing expects to produce 2,900 units in January and 3,600 units in February.Norton budgets $20 per unit for direct materials.Indirect materials are insignificant and not considered for budgeting purposes.The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $38,650.Norton desires the ending balance in Raw Materials Inventory to be 10% of the next month's direct materials needed for production.Desired ending balance for February is $51,100.What is the cost of budgeted purchases of direct materials needed for January?

A) $58,000
B) $65,200
C) $26,550
D) $25,150