Ennis, Inc. manufactures toboggans. The budgeted units to be produced and sold are below:

$\backslash$table$[[,$Expected Production,Expected Sales$],[$July$,3,600,2,900],[$August$,2,900,3,900]]$

It takes $16$ yards of yarn to produce a toboggan. The company's policy is to maintain yarn at the end of each month equal to $10\%$ of next month's production needs and to maintain a finished goods inventory at the end of each month equal to $15\%$ of next month's anticipated production needs. The cost of yarn is $$0\mathrm{.}25$ a yard. At July $1,5,760$ yards of yarn were on hand.

Instructions

Compute the budgeted cost of purchases for July.