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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