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Sue works in a company that manufactures shirts for school uniforms. For the past two years, she has been handling the production department's budgets for

Sue works in a company that manufactures shirts for school uniforms. For the past two years, she has been handling the production department's budgets for the company. The company has a policy to stock 10% of next month's sales in finished goods (FG) inventory and 20% of direct material inventory from the next month's direct materials (DM) requirement. The following production budget was in place for the current quarter of the year.
\table[[,Oct.,Nov.,Dec.,Quarter],[Budgeted Sales,2,100 Pairs,2,050 Pairs,2,500 Pairs,6,650],[Targeted Ending FG Inventory,205 Pairs,250 Pairs,-,],[Total units required,2,305,2,300,2,500,],[Beginning FG Inventory,210,205,250,210],[Budgeted Units to be produced,2,095,2,095,2,250,6,440]]
Assume that the quantity of direct material required is 2 meters of cloth for one shirt and the direct material cost per meter is $1.50. Help Sue calculate the total budgeted cost of ending DM inventory for the month of November.
1,257
6,285
1,350
6,750
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