Jackson Incorporated produces leather handbags. The production budget for the next four months is: July 5,200 units, August 7,800 units, September 7,600 units, and October 8,000 units. Each handbag requires 0.5 square meters of leather. Jackson Incorporated's ending leather inventory policy is 30% of next month's production needs. On July 1, leather inventory was expected to be 780 square meters. Leather is expected to cost $10 per square meter in June, but go up to $11 per square meter in July. What is the expected cost of leather purchases in July?

Multiple Choice

$33,790

$33,890

$31,390

$32,890