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 15 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 March February 132 units Chairs 104 units 88 units Stools 60 units 72 units 60 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 104 132 60 72 Add v Ending Inventory 33 22 18 15 : Production Needs 137 154 78 87 Less Beginning Inventory 26 33 15 18 Production Requirements 111 121 63 69 Steel Per Unit 4 4 5 5 Steel Required For Production v 444 484 315 345 Quantity of purchases in January and February Jan Feb Steel Required For Production v 759 829 Add v Ending Inventory 150 150 Production Needs 909 979 Less v Beginning Inventory 150 150 Steel Purchases 759 829 Cost of purchases in January and February Jan Feb Steel purchases rounded to purchasing lots 850 Cost per kilogram Total cost for steel purchases $ Cash disbursements for February Current month Month following $