Refer to the Donnelly Manufacturing information below.

Donnelly Manufacturing

Donnelly Manufacturing sells cedar birdhouses. The company has prepared the following forecast for the third quarter of 2019:

July	5 000 units
August	6 000 units
September	10 000 units

Inventory at 30 June 2019 was budgeted at 1000 units. Management would like the desired quantity of finished goods inventory at the end of each month to be equal to 20 per cent of next months budgeted unit sales. Octobers sales are projected to be 12 000 units.

Each completed unit of finished product requires 1 square metre of cedar at a cost of $1.50.

The company has determined that it needs 10 per cent of next months raw material needs on hand at the end of each month.

The cost of the direct material that should be purchased in Augustis:

a.	$32 94010 980
b.	$21 4807 160
c.	$30 60010 200
d.	$35 28011 760