Jackson Incorporated produces leather handbags. The production budget for the next four months is: July 5,800 units, August 7,100 units, September 8,200 units, October 8,300 units. Each handbag requires 0.6 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 1,200 square meters. What will leather purchases be in August?

Multiple Choice

8,020 square meters

4,425 square meters

7,230 square meters

3,044 square meters