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Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 5.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for

Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 5.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:

August 22,900 units
September 21,600 units
October 23,000 units
November 24,200 units
December 23,900 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 11,100 kilograms of Jurislon were on hand. The cost of Jurislon is $21 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:

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