Question $3(1$ point$)$

Grady manufactures medical supply kits. Projected production for the first months of production are $($hint: no beginning inventory for October$)$:

Oct production $26,000$

Nov production $31,000$

There are four materials per kit at a cost of $$3\mathrm{.}03$ each. The company desires to have enough materials on hand at month end to supply $20\%$ of next month's production. Payments for material purchases are made $50\%$ in the month purchased and the rest in the next month.

Each kit uses $1\mathrm{.}95$ hours of direct labor at $$15\mathrm{.}00$ per hour, payable in the month worked. Indirect costs are fixed per month at $$87,000$ and includes $$20,000$ of depreciation, and are payable in the month incurred.

What should they budget for cash payments for production costs in October?

Enter as a whole number, no commas and no dollar signs.

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