Bake Time makes and sells baking pans. Each pan uses 0.70 pounds of aluminum. Budgeted production and sales of pans in units for the next five months is as follows:

Budget Production/Budget Sales

June: $22180/22400

July: $21940/21300

Aug: $24940/24500

Sep: $26240/26700

Oct: $23720/24400

The company wants to maintain monthly ending inventories of aluminum equal to 15% of the following month's budgeted production needs, and monthly inventories of pans equal to 20% of the number needed for next months sales. The cost of aluminum is $0.85 per pound. How much is budgeted raw materials to be reported on the companys balance sheet at August 31?

A) $2,342

B) $3,936

C) $2,755

D) $3,346