Flagstaff Company has budgeted production units of $8,100$ for July and $8,300$ for August. The direct materials requirement per unit is $2$ ounces $($oz$.).$ The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete $30\%$ of the units of budgeted production in the following month. There was $4,860$ ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $$1\mathrm{.}25$ per ounce, is:

Multiple Choice

$$26,475.$

$$20,250.$

$$14,175.$

$$20,400.$

$$20,100.$