1. Magnatix Manufacturing Company has budgeted production for next year as follows.

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Production in units	80,000	96,000	128,000	112,000

Ten pounds of raw materials are required for each unit produced. Raw materials on hand at the beginning of the year total 20,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs.

If each pound of raw materials costs fifty cents, calculate the estimated cost of raw materials to be purchased in the first quarter.