Jackson Company makes and sells a single product. It takesfive pounds of direct materials to produce one unit ofthis product. Budgeted units to be produced for the nextfour months is as follows:budgeted units to be producedJune 48,100 July 29,300August 76,200September 50,400The company wants to maintain monthly ending inventoriesof direct materials equal to 160% of the next month'sproduction needs. The cost of direct materials is $1.50per pound. The company is in the process of preparing adirect materials purchases budget.Calculate the cost of direct materials budgeted to bepurchased in June.
