Question
Please help Jackson Incorporated produces leather handbags. The production budget for the next four months is: July 5,100 units, August 7,300 units, September 8,200 units,
Please help
Jackson Incorporated produces leather handbags. The production budget for the next four months is: July 5,100 units, August 7,300 units, September 8,200 units, and October 8,400 units. Each handbag requires 0.6 square meters of leather. Jackson Incorporateds ending leather inventory policy is 30% of next months production needs. On July 1, leather inventory was expected to be 918 square meters. Leather is expected to cost $7 per square meter in June, but go up to $8 per square meter in July. What is the expected cost of leather purchases in July?
1.) $26,148
2.) $28,648
3.) $28,548
4.) $27,648
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