Arnold Corporation manufactures beanies. The budgeted units to be produced and sold are below:

	Expected Production	Expected Sales
August	6,500	6,200
September	7,000	7,100

It takes 5 metres of yarn to produce a beanie. The company's policy to maintain yarn at the end of each month equal to 25% of the next month's production needs and to maintain a finished goods inventory at the end of each month equal to 30% of next month's anticipated production needs. The cost of yarn is $0.75 a metre. At August 1, 4,250 metres of yarn were on hand. Prepare a direct material purchases budget for August.