4. Denton Company manufactures a product A from raw material X. The following table indicates the number of pounds of X that is required to manufacture A: Product Material X A 2 The company has a policy of maintaining an inventory of finished goods on both products equal to 25 percent of the next month's budgeted sales. Listed below is the sales budget for the first quarter of the current year: Month Product A Jan. 10,000 Feb. 10,000 Mar. 11,000 Unit costs of material X is $4. The Denton Company has a policy of maintaining its raw material inventories at 50 percent of the next month's production needs.

Assuming that this policy is satisfied, prepare a material purchases budget for material X in dollars for January.