Edward Co. manufactures leather briefcases and carryalls. Edwards production manager has provided the following production budget. Each briefcase or carryall requires 1.3 yards of leather fabric and Edward maintains an ending inventory of leather fabric equal to 20% of the next months production needs.

	February	March	April	May	June
Budgeted production	51000	45000	59800	63600	57900

If each yard of leather fabric costs $6.50, how much should Edward budget for purchases of fabric in February?

$507000

$372450

$430950

$420810