Albertville Inc produces leather handbags. The production budget for the next four months is as follows: July 5,000 units, August 7,000 units, September 7,500 units, October 8,000 units. Each handbag requires 0.5 square meters of leather. Albertville Inc's leather inventory policy is 30% of next month's production needs. Leather is expected to cost $5.00 per square meter in June, but increases by 20% in July.

(T or F) The expected cost of leather purchases in July is $16,800.