Jackson Incorporated produces leather handbags. The production budget for the next four months is: July 5,400 units, August 7,000 units, September 8,400 units, and October 8,100 units. Each handbag requires 0.4 square meters of leather. Jackson Incorporateds ending leather inventory policy is 25% of next months production needs. On July 1, leather inventory was expected to be 540 square meters. Leather is expected to cost $9 per square meter in June, but go up to $10 per square meter in July. What is the expected cost of leather purchases in July?

Multiple Choice

$24,200

$21,700

$24,100

$23,200