On july 1 leather inventory was expected to be 1000 square


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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. What will leather purchases be in July?

a. 2,550 square meters
b. 2,700 square meters
c. 2,300 square meters
d. 3,575 square meters

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Accounting Basics: On july 1 leather inventory was expected to be 1000 square
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