Accounting homework help?

Posted on 2014-04-11 11:57:00 in Accounting by TJ

I usually try to work until I get stuck then ask the rest of my question, but I honestly don't have any idea what this question is even asking me. The wording is just too confusing. I'm not looking for just an answer, I would like some help understanding.





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



Month

Units

April 2,570

May 2,450

June 2,320



The target ending inventory of finished products is as follows.



March 31 2,030

April 30 2,260

May 31 2,110

June 30 2,300



2 units of material are required for each unit of finished product. Production for July is estimated at 2,770 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 $5 per unit throughout the period.



Calculate the May raw materials purchases in dollars.



The May raw material purchases cost

$

---

Answer Comment

No Answers Posted Yet.