Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

Sales are budgeted at $$297,000$ for November, $$317,000$ for December, and $$217,000$ 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 $$21,800.$

Monthly depreciation is $$24,500.$

Ignore taxes.

Balance Sheet

October $31$

Assets

Cash $ $28,500$

Accounts receivable $80,500$

Merchandise inventory $178,200$

Property, plant and equipment, net of $$624,000$ accumulated depreciation $1,011,000$

Total assets $ $1,298,200$

Liabilities and Stockholders' Equity

Accounts payable $ $243,000$

Common stock $747,000$

Retained earnings $308,200$

Total liabilities and stockholders' equity $ $1,298,200$

The cost of December merchandise purchases would be: