Units of material are required for each unit of finished

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Chandler Ltd. estimates sales for the second quarter of 2014 will be as follows.

Month


Units

April
2,540
May
2,450
June
2,390

The target ending inventory of finished products is as follows.

March 31
2,010
April 30
2,290
May 31
2,180
June 30
2,360

2 units of material are required for each unit of finished product. Production for July is estimated at 2,620 units to start building inventory for the fall sales period. Chandler's policy is to have an inventory of raw materials at the end of each month equal to 70% 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.

Reference no: EM13581062

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