Cullumber Ltd. estimates sales for the second quarter of 2022 will be as follows. Units Month April May June 2,120 2,300 The target ending inventory of finished products is as follows. March 31 April 30 May 31 June 30 2,280 2,690 2,790 2,500 2,560 Two units of materials are required for each unit of finished product. Production for July is estimated at 2,810 units to start building inventory for the fall sales period. Cullumber'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. Raw material purchases cost Senter the raw material purchases cost in dollars
Cullumber Ltd. estimates sales for the second quarter of 2022 will be as follows. Units Month April May June 2,120 2,300 The target ending inventory of finished products is as follows. March 31 April 30 May 31 June 30 2,280 2,690 2,790 2,500 2,560 Two units of materials are required for each unit of finished product. Production for July is estimated at 2,810 units to start building inventory for the fall sales period. Cullumber'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. Raw material purchases cost Senter the raw material purchases cost in dollars
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Ltd. estimates sales for the second quarter of 2022 will be as follows.
Month
April
May
June
March 31
April 30
May 31
June 30
The target ending inventory of finished products is as follows.
2,120
2,300
2,280
Units
2,500
2,690
2,790
2,560
Two units of materials are required for each unit of finished product. Production for July is estimated at 2,810 units to start building
inventory for the fall sales period. Cullumber'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.
Raw material purchases cost
$enter the raw material purchases cost in dollars
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