Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Month Units...

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Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Month Units April 2,500 May June March 31 2,440 The target ending inventory of finished products is as follows. April 30 May 31 June 30 2,340 2,000 2,230 2.190 2,310 2 units of material are required for each unit of finished product. Production for July is estimated at 2,690 units to start building inventory for the fall sales period. Rensing's policy is to have an inventory of raw materials at the end of each month equal to 60% 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. Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Month Units April 2,500 May June March 31 2,440 The target ending inventory of finished products is as follows. April 30 May 31 June 30 2,340 2,000 2,230 2.190 2,310 2 units of material are required for each unit of finished product. Production for July is estimated at 2,690 units to start building inventory for the fall sales period. Rensing's policy is to have an inventory of raw materials at the end of each month equal to 60% 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.

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To calculate the raw materials purchases for May we need to consider the following Calculate the tot... View the full answer