View Policies Current Attempt in Progress Blue Spruce, Inc. manufactures afghans. The budgeted units to be produced and sold are as follows: Expected Production Expected Sales August 3,600 2,950 September 2850 3,950 It takes 20 yards of yarn to produce an afghan. The company's policy is to maintain yarn at the end of each month equal to 5% of next month's production needs and to maintain a nished goods inventory at the end of each month equal to 20% of next month's anticipated production needs. The cost of yarn is $0.30 a yard. At August 1, 3,600 yards of yarn were on hand. Compute the budgeted cost of direct materials purchases for August. Budgeted cost of direct materials purchases for August $ eTextbook and Media Save for Later Attempts: 0 of 2 used