Question
Cullumber Ltd. estimates sales for the second quarter of 2022 will be as follows. Month/Units April 2,140 May 2,240 June 2,010 The target ending inventory
Cullumber Ltd. estimates sales for the second quarter of 2022 will be as follows.
Month/Units April 2,140
May 2,240
June 2,010
The target ending inventory of finished products is as follows.
March 31 1,680
April 30 1,860
May 31 1,840
June 30 1,950
Two units of materials are required for each unit of finished product. Production for July is estimated at 2,260 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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