Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,100 units, August 7,300 units, September 8,200 units, October 8,400 units. Each handbag requires 0.6 square meters of leather. Jackson Inc.s leather inventory policy is 30% of next months production needs. On July 1 leather inventory was expected to be 918 square meters. Leather is expected to cost $7.00 per square meter in June, but go up to $8.00 per square meter in July. What is the expected cost of leather purchases in July?

• $27,648

• $28,548

• $26,148

• $28,648