April May June Quarter Expected Cash Disbursement Production 26,000 46,000 29,000 101,000 Materials per unit (pounds) 5 5 for Materials Production needs 130,000 230,000 145,000 505,000 Add: Desired ending inventory 23,000 14.500 11,500 11,500 Royal pays $0.40 per Total needed 153,000 244,500 156,500 516,500 pound for its Ele Edit View Ins Less: Beginning inventory 13,000 23,000 14,500 13,000 materials. Materials to be purchased 140,000 221,500 142,000 503,500 One-half of a L61 fx month's purchases is A B D E G paid for in the month of purchase; April May June the other half is paid Accounts payable 3/31 $12,000 Quarter $ 12,000 in the following month. April purchases 50% x $56,000 28,000 28,000 50% x $56,000 28,000 28,000 The March 31 May purchases accounts payable balance is $12,000. 50% x $88,600 44,300 44,300 Let's calculate expected cash disbursements. 50% x $88,600 June purchases 44,300 44,300 50% x $56,800 28,400 28,400 Total cash disbursements $40,000 $72,300 $ 72,700 $185,000