Zhang Industries budgets production of 300 units in June and 310 units in July. Each finished unit requires 4 pounds of raw material K, which costs $5 per pound. Each months ending inventory of raw materials should be 35% of the following months budgeted production. The June 1 raw materials inventory has 420 pounds of raw material K. Compute the budgeted cost of purchases for raw material K for June.

Multiple Choice

• $4,100.

• $6,000.

• $6,200.

• $6,070.

• $6,100.