Jackson Incorporated produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,300 units, September 7,700 units, and October 8,700 units. Each handbag requires 0.4 square meters of leather. Jackson Incorporateds ending leather inventory policy is 35% of next months production needs. On July 1, leather inventory was expected to be 742 square meters. Leather is expected to cost $12 per square meter in June, but go up to $13 per square meter in July. What is the expected cost of leather purchases in July?

Multiple Choice

$32,100

$29,700

$32,200

$31,200