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March 31 April 30 May 31 June 30 1,840 2,020 2,000 2,150 Two units of materials are required for each unit of finished product. Production for July is estimated at 2,460 units to start building inventory for the fall sales period. Sheridan'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. Raumaterials are expected to cost $4 per unit throughout the period.

March 31 April 30 May 31 June 30 1,840 2,020 2,000 2,150 Two units of materials are required for each unit of finished product. Production for July is estimated at 2,460 units to start building inventory for the fall sales period. Sheridan'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. Raumaterials are expected to cost $4 per unit throughout the period.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The target ending inventory of finished products is as March 31 April 30 May 31 June 30 1,840 2,020 2,000 2,150 Two units of materials are required for each unit of finished product. Production for July is estimated at 2.460 units to start building inventory for the fall sales period. Sheridan'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 $
Transcribed Image Text:The target ending inventory of finished products is as March 31 April 30 May 31 June 30 1,840 2,020 2,000 2,150 Two units of materials are required for each unit of finished product. Production for July is estimated at 2.460 units to start building inventory for the fall sales period. Sheridan'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 $
Sheridan Ltd. estimates sales for the second quarter of 2022 will be as follows. Month April May June Units 2,340 2,440 March 31 April 30 May 31 June 30 The target ending inventory of finished products is as follows. 2,210 1,840 2,020 2,000 2,150 Two units of materials are required for each unit of finished product. Production for July is estimated at 2.460 units to start building inventory for the fall sales period. Sheridan'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.
Transcribed Image Text:Sheridan Ltd. estimates sales for the second quarter of 2022 will be as follows. Month April May June Units 2,340 2,440 March 31 April 30 May 31 June 30 The target ending inventory of finished products is as follows. 2,210 1,840 2,020 2,000 2,150 Two units of materials are required for each unit of finished product. Production for July is estimated at 2.460 units to start building inventory for the fall sales period. Sheridan'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.
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