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A company plans to sell 75,000 units in August and 85,000 units in September. Desired monthly ending inventory is 75% percent of next months sales.

A company plans to sell 75,000 units in August and 85,000 units in September. Desired monthly ending inventory is 75% percent of next months sales. beginning units inventory is 52,500. Each unit of finished product requires 7 pound of raw material and at cost of $6.35 per pound. There are 105,000 kilograms of raw material in inventory on July 31.

Compute estimated cost of raw-material purchases for month August.

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