Biology Forums - Study Force

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

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February

March

April

May

June

Budgeted production

50,000

44,000

60,000

64,000

58,000

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

▸ $372,480

▸ $468,480

▸ $310,400

▸ $384,000

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