5. EA5. LO 7.2 Sunrise Poles manufactures hiking poles and is planning on producing 4.000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The company's policy is to have enough material on hand to equal 10% of the next month's production needs and to maintain a finished goods inventory equal to 25% of the next month's production needs. What is the budgeted cost of purchases for March? 4000 2000 3700 Units to be produced Pounds per unit Pounds for production Next month's production Desired ending inventory Pounds per unit Ending inventory in pounds Beginning inventory in pounds Pounds needed for purchase Cost per pound Budgeted cost of purchases 185 1.20