Reference no: EM132562400

Question - The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit. (b) 30% of credit sales are collected in the month of the sale and 70% in the following month. (c) The ending finished goods inventory equals 30% of the following month's unit sales. (d) The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.70 per pound. (e) 20% of raw materials purchases are paid for in the month of purchase and 80% in the following month. (f) The direct labour wage rate is $14 per hour. Each unit of finished goods requires two direct labour-hours. (g) The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $60,000. What is the estimated cost of raw materials purchases for July?