Jackson Inc

Multiple Choice

Jackson Inc.produces leather handbags.The production budget for the next four months is: July 5,000 units,August 7,000,September 7,500,October 8,000.Each handbag requires 0.5 square meters of leather.Jackson Inc.'s leather inventory policy is 30% of next month's production needs.On July 1 leather inventory was expected to be 1,000 square meters.Leather is expected to cost $5.00 per square meter in June,but go up to $6.00 per square meter in July.What is the expected cost of leather purchases in July?

A) $13,800
B) $15,300
C) $16,200
D) $16,300