Rensing Ltd. estimates sales for the second quarter of 2022 will be as follows.

The target ending inventory of finished products is as follows.

Two units of materials are required for each unit of finished product. Production for July is estimated at 2,700 units to start building inventory for the fall sales period. Rensing's policy is to have an inventory of raw materials at the end of each month equal to 50% of the following month's production requirements.

Raw materials are expected to cost $4 per unit throughout the period.

Instructions

Calculate the May raw materials purchases in dollars.

Transcribed Image Text:

Month April May June Units 2,550 2,675 2,390