Forecast Cash Payment

Dear Mr Moffat

Could you kindly confirm if I have answer below question correctly? Unfortunately the answer for this specific question was not provided so I cannot cross check by myself.

Question:

A manufacturing business makes and sells widgets. Each widget requires two units of raw materials which cost $3 each. Production and sales quantities of widgets each month are as follow:

Month Sale and Production (units)
December (actual) 50,000
January (budget) 55,000
February (budget) 60,000
March (budget) 65,000

In the past, the business has maintained its inventory of raw materials at 100,000 units. However, it plans to increase raw material inventories to 110,000 units at the end of January and 120,000 units at the end of February. the business takes one month’s credit from its suppliers.

Calculate the forecast payments to suppliers each months, for raw material purchases.

My working

December = 50000*2 =100,000 (production) + 100,000 (closing inventory) @ $3 = $600,000

January = (100000) (Open Inventory) + 55000*2=110000 +110000 (closing inventory) @$3= 360000

February = (110000) (Open Inventory) + 60000*2=120000 + 120000 (closing inventory) @ $3 = $390000

As the business takes a month to pay their suppliers the payment per month will be:

January $300,000
February 360,000
March 390,000

Is it correct?

Thank you very much

Gabbi