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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
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.
February
March
April
May
June
Budgeted production
50,000
44,000
60,000
64,000
58,000
If each yard of leather fabric costs $6.40, how much should Barry budget for purchases of fabric in February?
$468,480
$384,000
$310,400
$372,480
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