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Category > Accounting Posted 17 Aug 2017 My Price 9.00

Chandler Ltd

Exercise 9-7

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

Month

  

Units
April   2,530
May   2,500
June   2,350


The target ending inventory of finished products is as follows.

March 31   2,010
April 30   2,200
May 31   2,120
June 30   2,310


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. ChandlerAc€?cs policy is to have an inventory of raw materials at the end of each month equal to 60% of the following monthAc€?cs production requirements.

Raw materials are expected to cost $6 per unit throughout the period.

Calculate the May raw materials purchases in dollars.

The May raw material purchases cost  

$
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Maurice Tutor
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Status NEW Posted 17 Aug 2017 07:08 PM My Price 9.00

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