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James Co. manufactures leather briefcases and carryalls. Jamess production manager has provided the following production...

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Accounting

James Co. manufactures leather briefcases and carryalls. Jamess production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather fabric and James maintains an ending inventory of leather fabric equal to 20% of the next months production needs.

February

March

April

May

June

Budgeted production

50000

43000

59000

63000

57000

If each yard of leather fabric costs $8.50, how much should James budget for purchases of fabric in April?

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