Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $303,000 for November, $323,000 for December, and $223,000 for January. Collections are expected to be 70% in the month of sale and 30% in the month following the sale. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 80% 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 $22,400. Monthly depreciation is $27,500. Ignore taxes. $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624, 000 accumulated depreciation Total assets 33,000 83,500 181, 800 918, 000 $1,216,300 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 252,000 753,000 211, 300 $1,216, 300 Retained earnings at the end of December would be: Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August September October November December 23, 600 units 22, 300 units 23, 700 units 24, 900 units 24, 600 units The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 3 this requirement was not met since only 11,800 kilograms of Jurislon were on hand. The cost of Jurislon is $28 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of Jurision to be purchased in August is