Question
Cullumber Ltd. estimates sales for the second quarter of 2022 will be as follows. Month Units April 2,690 May 2,790 June 2,560 The target ending
Cullumber Ltd. estimates sales for the second quarter of 2022 will be as follows.
Month | Units | ||
---|---|---|---|
April | 2,690 | ||
May | 2,790 | ||
June | 2,560 |
The target ending inventory of finished products is as follows.
March 31 | 2,120 | |
April 30 | 2,300 | |
May 31 | 2,280 | |
June 30 | 2,500 |
Two units of materials are required for each unit of finished product. Production for July is estimated at 2,810 units to start building inventory for the fall sales period. Cullumbers policy is to have an inventory of raw materials at the end of each month equal to 50% of the following months production requirements. Raw materials are expected to cost $4 per unit throughout the period. Calculate the May raw materials purchases in dollars.
Raw material purchases cost | $enter the raw material purchases cost in dollars |
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