Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 7.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:

August	23,100	units
September	21,800	units
October	23,200	units
November	24,400	units
December	24,100	units

The company wants to maintain monthly ending inventories of Jurislon equal to 25% of the following month's production needs. On July 31, this requirement was not met since only 11,300 kilograms of Jurislon were on hand. The cost of Jurislon is $23 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.

The total cost of Jurislon to be purchased in August is:

Multiple Choice

• $3,984,750

• $4,664,975

• $4,924,875

• $1,630,700