Blossom Ltd. estimates sales for the second quarter of 2020 will be as f Month Units April 2.520 May 2,440 June 2.390 The target ending inventory of finished products is as follows. March 31 2,010 April 30 2,280 May 31 2,170 June 30 2,330 2 units of material are required for each unit of finished product. Production for July is estimated at 2,750 units to start building inventory for the fall sales period. Blossom's policy is to have an inventory of raw materials at the end of each month equal to 50% the following month's production requirements. Raw materials are expected to cost $7 per unit throughout the period. Calculate the May raw materials purchases in dollars. Raw material purchases cost $
Blossom Ltd. estimates sales for the second quarter of 2020 will be as f Month Units April 2.520 May 2,440 June 2.390 The target ending inventory of finished products is as follows. March 31 2,010 April 30 2,280 May 31 2,170 June 30 2,330 2 units of material are required for each unit of finished product. Production for July is estimated at 2,750 units to start building inventory for the fall sales period. Blossom's policy is to have an inventory of raw materials at the end of each month equal to 50% the following month's production requirements. Raw materials are expected to cost $7 per unit throughout the period. Calculate the May raw materials purchases in dollars. Raw material purchases cost $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Ltd. estimates sales for the second quarter of 2020 will be as follows.
Month
Units
April
2.520
May
2,440
June
2,390
The target ending inventory of finished products is as follows.
March 31
2.010
April 30
2,280
May 31
2.170
June 30
2,330
2 units of material are required for each unit of finished product. Production for July is estimated at 2,750 units to start building
inventory for the fall sales period. Blossom'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 $7 per unit throughout the period.
Calculate the May raw materials purchases in dollars.
Raw material purchases cost
$
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