Simpson Manufacturing Produces a product that requires that 4 gallons of a liquid chemical. The cost of the chemical is $12 Per Gallon. Simpson maintains an ending iventory of the chemical equal to 30% of the following month's production usage.

Planned production for Simpson is as follows 8000 Units in January, 7500 Units in February and 6000 units in march. Assume that Raw material inventories are equal to the budgeted levels. The cos the liquid chemical budgeted to the purchased in February would be