Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

Sales are budgeted at $280,000 for November, $260,000 for December, and $250,000 for January.

Collections are expected to be 45% in the month of sale and 55% in the month following the sale.

The cost of goods sold is 80% of sales.

The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

Other monthly expenses to be paid in cash are $23,400.

Monthly depreciation is $14,400.

Ignore taxes.

Balance Sheet

October 31

Assets

Cash $ 21,800

Accounts receivable 71,800

Merchandise inventory 156,800

Property, plant and equipment, net of $573,800 accumulated depreciation 1,095,800

Total assets $ 1,346,200

Liabilities and Stockholders' Equity

Accounts payable $ 255,800

Common stock 821,800

Retained earnings 268,600

Total liabilities and stockholders' equity $ 1,346,200

The cost of December merchandise purchases would be: