Question
Please explain the steps to completing this problem Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units April
Please explain the steps to completing this problem
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows.
Month Units
April 2,590
May 2,450
June 2,350
The target ending inventory of finished products is as follows.
March 31 2,040
April 30 2,250
May 31 2,110
June 30 2,370
2 units of material are required for each unit of finished product. Production for July is estimated at 2,800 units to start building inventory for the fall sales period. Rensing's policy is to have an inventory of raw materials at the end of each month equal to 70% of the following month's production requirements.
Raw materials are expected to cost $5 per unit throughout the period.
How do I calculate the May raw materials purchases in dollars.
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