Question

Bramble Ltd. estimates sales for the second quarter of 2017 will be as follows.

Month		Units
April		2,600
May		2,420
June		2,320

The target ending inventory of finished products is as follows.

March 31		2,010
April 30		2,270
May 31		2,100
June 30		2,360

Two units of material are required for each unit of finished product. Production for July is estimated at 2,670 units to start building inventory for the fall sales period. Bramble’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 $6 per unit throughout the period.

Calculate the May raw materials purchases in dollars.

Raw material purchases cost

$

Answer 1

answered by: anonymous