Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,700 units, September 8,400 units, October 8,100 units. Each handbag requires 0.5 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 795 square meters. Leather is expected to cost $11.00 per square meter in June, but go up to $12.00 per square meter in July. What is the expected cost of leather purchases in July?

Multiple Choice

• $37,120

• $36,120

• $34,620

• $37,020