Direct Materials Purchases Budget

Seranno Inc. budgeted production of $65,000$ personal journals in $20Y6.$ Paper is required to produce a journal. Assume $89$ square yards of paper are required for each journal. The estimated January $1,20Y6,$ paper inventory is $289,000$ square yards. The desired December $31,20Y6,$ paper inventory is $202,000$ square yards.

If paper costs $$0\mathrm{.}14$ per square yard, determine the direct materials purchases budget for $20Y6.$ If required, round your final answer to the nearest dollar.