Steven Co. manufactures leather briefcases and carryalls. Stevens production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather fabric and Steven maintains an ending inventory of leather fabric equal to 25% of the next months production needs.

	February	March	April	May	June
Budgeted production	51500	45000	59200	64800	58000

If each yard of leather fabric costs $ 6.40, how much should Steven budget for purchases of fabric in February?

$ 395520

$ 481920

$ 323520

$ 383040