T M.

asked • 07/20/19

​RyRy, Inc. manufactures dance apparel. Unit sales projections for the first five months of the upcoming year are as​ follows:

Month Unit Sales
January 3,500
February ​3,800
March ​3,300
April 5,000
May                       ​5,000


Beginning finished goods inventory consisted of 850 units. The desired inventory of units at the end of each month in the upcoming year should equal​ 25% of the following​ month’s budgeted unit sales.

Each unit requires 2 yards of fabric. The company wants to have​ 20% of the fabric required for the next​ month’s expected production on hand at the end of each month. This inventory requirement was met at the end of the previous year. The fabric costs​ $0.20 per yard.

What is the expected dollar amount of raw material purchases for the first quarter of the upcoming​ year?

​$

​(round to the nearest dollar and use commas where​ appropriate)

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