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Derek Co. manufactures beanies. The budgeted units to be produced and sold are below: Expected Production Expected Sales November 5,200 4,500 December 4,160 5,800 It

Derek Co. manufactures beanies. The budgeted units to be produced and sold are below:

Expected Production

Expected Sales

November

5,200

4,500

December

4,160

5,800

It takes 36 yards of yarn to produce a beanie. The company's policy is to maintain yarn at the end of each month equal to 8% of next month's production needs and to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated production needs. The cost of yarn is $0.40 a yard. At November 1, 14,976 yards of yarn were on hand.

Required: Compute the budgeted cost of material purchases for November (Round to the nearest dollar).

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