Kunchai Corp.manufactures a cleaning product called Gemini. Expected sales for Gemini (in litres) for the November to January quarter areas follows

:November 62500

December 67500

January 55000

Budgeted sales of Gemini (litres)

beginning inventory of Gemini is 3,125 litres,and the company keeps an ending inventory equal to 5% of next months sales.

The following information relates to Geminis two main ingredients,Alpha and Beta:

Units required to make 1litre of Gemini Cost per unit Opening inventory

Alpha 4 $4.00 1,020

Beta 12 $8.20 3,080

To maintain smooth operations, the company uses just-in-time inventory management and at the end of November plans to have just 0.2% of next months production requirements on hand in ending inventory.

How much should Kunchais controller budget for the cost of raw materials purchases of Alpha and Beta for November?

a)$1,002,040

b)$7,135,149

c)$7,136,108

d)$7,164,565