Barry Co. manufactures leather briefcases and carryalls. Barry?s production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather fabric and

Barry maintains an ending inventory of leather fabric equal to 25% of the next month?s production needs.

If each yard of leather fabric costs $8.60, how much should Barry budget for purchases of fabric in April?

a. $784,320

b. $629,520

c. $619,200

d. $524,600

Budgeted production February March April 50,000 44,000 60,000 May June 64,000 58,000