Question

Estimated sales for the secon dquarter will be as follows: April - 2,520 May  - 2,450 June...

Estimated sales for the secon dquarter will be as follows:

April - 2,520

May  - 2,450

June - 2,350

Targe ending inventory of finished products is

March 31 - 2030

April 30 - 2,220

May 31 - 2,110

June 30 - 2,360

2 units of material are required for each unit of finished product. Proudctino for July is 2,640 units to start building inventory for the fall sales period. Comapny policy is to have an inventory of raw materials at the end of each month equal to 60% of the following month's production requirements. Raw materials are expected to cost $4 per unit thorughout the period. What is the raw materials purchases cost?

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