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Please explain I'm so lost Chandler Ltd. estimates sales for the second quarter of 2014 will be as follows. Month Units April 2,550 May 2,475

Please explain I'm so lost

Chandler Ltd. estimates sales for the second quarter of 2014 will be as follows.

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 2,200

June 30 2,310

2 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. Chandlers 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.

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