ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced July 32,000 units August 12,000 units September 28,000 units October 35,000 units The company wants to maintain monthly ending inventories of direct materials equal to 36% of the next month's production needs. The cost of direct materials is $8 per pound. Calculate the total cost of direct materials to be purchased in July.