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Bunny s Warehouse is a manufacturer that makes and sells carrot holders. The following information pertains to 2 0 2 2 . Budgeted monthly sales

Bunnys Warehouse is a manufacturer that makes and sells carrot holders. The following information
pertains to 2022.
Budgeted monthly sales in units:
August 100,000
September 90,000
October 100,000
November 100,000
Finished Goods inventory, 1 August: 24,000 units
Work-in-process inventory, 1 August: 0
Raw Materials inventory, 1 August: 11,400 kg
The company has the following ending inventory policies:
- Ending Finished Goods inventory each month is required to be 40% of next months sales.
- Ending Raw Materials inventory is required to be 20% of next months production needs.
- Producing one carrot holder requires 0.5kg of the raw materials,
- Raw materials are purchased at $10/kg. This price is not expected to change in 2022.
- Purchases of materials are paid 40% in the month purchased and 60% in the following month.
- Each carrot holder is sold for $18. All sales are made on credit and customers pay 50% in the
month of sale; 45% in the month following. The remaining 5% is uncollectable.
Required:
Determine the companys expected October cash disbursement for material purchases

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