Davy Johnson is CFO for a newly formed manufacturing company. Below is the anticipated monthly production for the first six months of operation. Davy is interested in learning which of the first six months will require cash outlays of more than $40,000 toward the purchase of materials. Each unit requires 5 pounds of material at $10 per pound. All material is purchased in the month prior to its expected use. Purchases are paid for 10% in the month of purchase, 40% in the month following the month of purchase, and 50% in the second month following the month of purchase. Compute the total amount paid for May UNITS Paid in Purchasing Activity (Month prior Total Pounds used in Production Total materials Paid in Month Paid in Month Total Month Relating to Relating to cost Two Months Paid in (10%) Prior Month to Prior month (40%) production) (50%) January 800 4,000 February 500 2,500 March 1,200 6,000 April 700 3,500 May 900 4,500 June 600 3,000 Totals O $40,000 O $48,500 O $36,000 O $38,500