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:

Chairs		Stools		Upholstery		Steel
26 units		16 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 first three months of the year 2020 is as follows:

		January			February			March
Chairs		104	units		108	units		80	units
Stools		64	units		80	units		56	units

Calculate the cash disbursements in February for purchases of steel.

Steel requirements for January and February
		Chairs				Stools
		Jan		Feb		Jan		Feb
Production NeedsSteel Required For ProductionEnding InventoryBeginning InventorySteel Per UnitBudgeted SalesProduction Requirements
AddLess: Production RequirementsBudgeted SalesSteel Required For ProductionProduction NeedsSteel Per UnitEnding InventoryBeginning Inventory
Beginning InventorySteel Required For ProductionProduction NeedsBudgeted SalesProduction RequirementsEnding InventorySteel Per Unit
AddLess: Ending InventoryBudgeted SalesProduction NeedsProduction RequirementsBeginning InventorySteel Required For ProductionSteel Per Unit
Steel Per UnitBudgeted SalesEnding InventoryBeginning InventoryProduction NeedsProduction RequirementsSteel Required For Production
Production NeedsSteel Required For ProductionBudgeted SalesEnding InventoryBeginning InventoryProduction RequirementsSteel Per Unit
Beginning InventoryBudgeted SalesEnding InventorySteel Per UnitProduction NeedsSteel Required For ProductionProduction Requirements

Quantity of purchases in January and February
		Jan		Feb
Production NeedsBeginning InventorySteel Required For ProductionSteel PurchasesEnding Inventory
LessAdd: Ending InventoryBeginning InventoryProduction NeedsSteel Required For ProductionSteel Purchases
Steel Required For ProductionBeginning InventoryProduction NeedsSteel PurchasesEnding Inventory
AddLess: Ending InventorySteel Required For ProductionProduction NeedsSteel PurchasesBeginning Inventory
Beginning InventorySteel PurchasesProduction NeedsSteel Required For ProductionEnding Inventory

Quantity of purchases in January and February

Cost of purchases in January and February
	Jan	Feb
Steel purchases rounded to purchasing lots
Cost per kilogram
Total cost for steel purchases	$	$

Cash disbursements for February
Current month		$
Month following
		$