Question: Your answer is incorrect. Try again. Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units April 2,540 May

Your answer is incorrect. Try again.

Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows.

Month

Units

April 2,540
May 2,460
June 2,320

The target ending inventory of finished products is as follows.

March 31 2,040
April 30 2,210
May 31 2,140
June 30 2,360

2 units of material are required for each unit of finished product. Production for July is estimated at 2,670 units to start building inventory for the fall sales period. Rensings policy is to have an inventory of raw materials at the end of each month equal to 60% of the following months production requirements. Raw materials are expected to cost $6 per unit throughout the period. Calculate the May raw materials purchases in dollars.

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