Detailed Answer
Answer (A) is correct.
Beginning inventory should be 30,600 pounds (34,000 units of budgeted
sales × 3 pounds × 30%). Ending inventory should be 43,200 pounds
(48,000 units of budgeted sales for Quarter 4 × 3 pounds × 30%). Since
BI plus purchases minus EI equals Quarter 3 budgeted sales, purchases
must be 114,600.
30,600 + X – 43,200 = 3 × 34,000
X – 12,600 = 102,000
X = 114,600