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Wildhorse Ltd. estimates sales for the second quarter of 2022 will be as follows. Month Units April 2540 May 2640 June 2,412 The target ending
Wildhorse Ltd. estimates sales for the second quarter of 2022 will be as follows.
Month
Units
April
2540
May
2640
June
2,412
The target ending inventory of finished products is as follows.
March 31
2,000
April 30
2284
May 31
2,160
June 30
2348
2 units of material are required for each unit of finished product. Production for July is estimated at 2,660 units to start building inventory for the fall sales period. Wildhorse's policy is to have an inventory of raw materials at the end of each month equal to 50% of the following month's 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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