Originally, hmos ppos and traditional forms of indemnity health insurance were distinct, mutually exclusive products and mechanisms for providing health care converge. today, an observer may be hard pressed to uncover the differences among product that bill themselves as hmos, ppos or managed care overlays to health insurances.

Norton manufacturing expects to produce 2,900 units in january and 3,600 units in february. norton budgets $20 per unit for direct materials. indirect materials are insignificant and not considered for budgeting purposes. the balance in the raw materials inventory account (all direct materials) on january 1 is $38,650. norton desires the ending balance in raw materials inventory to be 10% of the next month's direct materials needed for production. desired ending balance for february is $51,100. what is the cost of budgeted purchases of direct materials needed for january? $58,000 $65,200 $26,550 $25,150