Alex, Inc. manufactures toboggan hats. The budgeted units to be produced and sold are below: It takes 20 yards of yarn to produce each hat. The company's policy is to maintain yam at the end of each month equal to 5% of next month's production needs and to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated production needs. The cost of yarm is $0.25 a yard. At August 1, 3.500 yards of yarn were on hand. Instructions Compute the budgeted cost of purchases for August