Nevis Motors manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $270 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget:

	July	August	September
Planned production in units	1,400	1,500	1,380

The cost of platinum to be purchased to support August production is:

Multiple Choice

a. $204,120.

b. $200,880.

c. None of the answers is correct.

d. $202,500.

e. $412,920.