A company started its business at the beginning of this year. The company makes a single product; the product requires 2 pounds (lbs) of a single raw material that costs $10 per pound. The company's materials Inventory policy requires to have in ending inventory of each quarter exactly 30% of the next quarter's raw material needs for production. The company pays for 80% of its raw material purchases in the quarter of purchase. The remainder is paid in the next quarter. The quarterly production budget of this year for the single product is below. Quarter Production in units Q1 77,000 Q2 Q3 Q4 82,000 111,000 120,000 Q. What is the expected cash disbursement in the second quarter (Q2)? ANS. $ A company started its business at the beginning of this year. The company makes a single product; the product requires 2 pounds (lbs) of a single raw material that costs $10 per pound. The company's materials Inventory policy requires to have in ending inventory of each quarter exactly 30% of the next quarter's raw material needs for production. The company pays for 80% of its raw material purchases in the quarter of purchase. The remainder is paid in the next quarter. The quarterly production budget of this year for the single product is below. Quarter Production in units Q1 77,000 Q2 Q3 Q4 82,000 111,000 120,000 Q. What is the expected cash disbursement in the second quarter (Q2)? ANS. $