Alliance Companys budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $2.50 per pound. Each months ending raw materials inventory should equal 40% of the following months budgeted materials. The January 1 inventory for this material is 38,400 pounds. What is the budgeted materials cost for January?

Multiple Choice

• $208,000.

• $256,000.

• $352,000.

• $240,000.

• $144,000.