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How much should donald budget for purchases

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Question - Donald Co. manufactures leather briefcases and carryalls. Donald's production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather fabric and Donald maintains an ending inventory of leather fabric equal to 25% of the next month's production needs.

 

February

March

April

May

June

Budgeted production

50500

44000

59900

63300

57800

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

Reference no: EM133159428

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