Sherman has budgeted sales for the upcoming quarter as follows:
_______April ___ May ____ June
Units....1,600......1,900......1,750
The desired ending finished goods inventory for each month is one-half of next month's budgeted sales. Three pounds of direct material are required for each unit produced. If direct material costs $5 per pound, and must be paid for in the month of purchase, the budgeted direct materials purchases (in dollars) for April are
a. $17,500
b. $40,500.
c. $26,250.
d. $38,250