Jim's Pastries, Inc. manufactures donuts, which require 0.3 pounds of flour per unit. Jim's production budget for the next four months is as follows: July, 5,000 units; August, 7,000 units; September, 8,000 units; and October, 8,000 units.The raw materials flour ending inventory policy is 25% of the following month's production needs.

(T or F) If August planned purchases are $17,400, then the approximate cost per pound of flour for August is $8.00.