Answer:
The first part of the question is missing, so I looked for a similar question and found:
Each unit of finished goods requires 4 pounds of raw materials (at $2 per pound). The ending raw materials inventory equals 40% of the following month’s raw materials production needs. If 80,600 pounds of raw materials are required for production in July. The corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month.
Raw materials purchases during July:
production requirements = 80,600 pounds
- beginning inventory = 80,000 x 40% = -32,000 pounds
+ ending inventory = 96,250 x 40% = 38,500 pounds
total materials purchases = 87,100 pounds
x $2 per pound = $174,200
cash disbursements during July = (June's purchases x 60%) + (July's purchases x 40%) = ($136,560 x 60%) + ($174,200 x 40%) = $151,616
