Chandler Ltd. estimates sales for the second quarter of 2012 will be as follows.

Two units of material 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.
Chandler’s policy is to have an inventory of raw materials at the end of each month equal to 60% 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.

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Month Units April 2,550 May 2,475 June 2,390 The target ending inventory of finished products is as follows. March 31 2,000 April 30 2,230 May 31 2,190 June 30 2,310