Kidman Publishers Inc. budgeted production of 38,000 diaries in 2016. Paper is required to produce a diary. Assume 107 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 285,000 square yards. The desired December 31, 2016, paper inventory is 142,000 square yards.

If paper costs $0.13 per square yard, determine the direct materials purchases budget for 2016. If required, round your final answer to the nearest dollar.