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Category > Accounting Posted 11 Aug 2017 My Price 5.00

Chandler Ltd.

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

Month   Units
April   2,520
May   2,420
June   2,360


The target ending inventory of finished products is as follows.

March 31   2,020
April 30   2,260
May 31   2,140
June 30   2,370


2 units of material are required for each unit of finished product. Production for July is estimated at 2,660 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 60% of the following month's production requirements.

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

Calculate the May raw materials purchases in dollars.


Calclulate the May raw material purchase cost.

 

 

Thanks in advance.

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 12:08 AM My Price 5.00

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