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Lyon Factory Ltd. manufactures two products: chairs and stools. Each chair requires 3 m of upholstery and 4 kg of steel. Each stool requires 2 m of upholstery and 5 kg of steel. Upholstery costs $2 per metre and steel costs $5 per kilogram. Lyon Factory expects inventories at January 1, 2020, to be as follows: 24 units 14 units 75 m 150 kg Inventories of raw materials should not be allowed to fall below the amounts given as at January 1, 2020. Inventories of finished furniture at the beginning of each month should be enough to cover 25% of the anticipated sales for that month. Upholstery is ordered in units of 100 m and steel in units of 50 kg. Half of the materials purchased are paid for in the month of purchase and the other half in the following month. The sales budget for the rst three months of the year 2020 is as follows: Chairs 96 units 116 units 76 units Stools 56 units 76 units 64 units Calculate the cash disbursements in February for purchases of steel. Calculate the cash disbursements in February for purchases of steel. Steel requirements for January and February Chairs Stools Jan Feb Jan Feb Budgeted Sales 96 116 56 76 Add v . Ending Inventory V 29 19 19 16 Production Requirements V 125 135 75 92 Less v. Beginning Inventory V 24 29 14 19 Production Needs V 101 106 61 73 Steel Per Unit 4 4 5 5 Steel Required For Production v 404 424 305 365Quantity of purchases in January and February II Steel Required For Production v 709 789 Add v . Ending Inventory v 150 Steel Purchases Less v , Beginning Inventory v 150 150 Production Needs 709 789 150 I Cost of purchases in January and February Steel purchases rounded to purchasing lots Cost per kilogram M M Total cost for steel purchases $ Current month lE Month following I: 15$