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Refer to the following information. What is the budgeted cost of component A to be purchased in June? Planned production in units for May, June

Refer to the following information. What is the budgeted cost of component A to be purchased in June?

Planned production in units for May, June and July are 43,800, 41,000 and 50,250.

Each unit requires 5.5 units of component A. Company policy requires that ending inventories of raw materials for each month be 15% of the next month's production needs. The cost of one unit of component A is $2.

A $233,131

B $217,869

C $225,500

D $266,956

E $466,262

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