Production budget (units) Materials requirements per unit unchan - . from connect Materials needed for - rcduction Budgeted ending inventory Total materials requirements (units) 13,876 Beginning inventory Materials to be urchased Material price per unit Raw Material purchases before Discount Discount (5% of purchases exceeding 10,000 ._ Budgeted raw material purchases 9 !!!E 14,61 8 51 10 11 48 $20. $20.0 $20.0 $170,320.00 $209,740.00 $229,740.0 8 30 490 $20.00 $609,800.00 10410 mm m I_ O l' '3.- p. 8. $170,320.00 $209,253.00 7) Additionally, to conserve cash, the company has decided to delay payment for their raw material purchases. The company previously paid 100% of their raw material purchases (revised budget in 3) in the month after the purchase was made. Starting with March purchases (Accounts Payable balance at 3/31), Zigby plans to only pay 80% of their purchases in the first month after the purchases are made. The remaining 20% will be paid in the second month after purchase (Example: 80% of accounts payable on March 31 will be paid in April and the remaining 20% will be paid in May. April sales will be paid in May and June, etc.) Remember: Purchases budgeted in 3 increased accounts payable (credit) while estimated payments here decreases accounts payable (debit). March 31 Accounts Payable April purchases May Purchases June Purchases Total cash payments