Frausto, Inc., plans to produce 22,000; 24,000; 26,000; 28,000; 30,000; and 32,000 units for the first six months, respectively, of the coming year. Each unit requires 2 liters of direct materials that cost $3 per liter. Frausto indicates that the beginning inventory of direct materials is 5,000 liters, but Frausto wants to reduce inventory to 5 percent of what is needed for the next month’s production. Frausto pays for 70 percent of its purchases in the month of purchase, taking a 3 percent discount. The remaining purchases are paid in the month following purchase. Frausto indicates that the beginning accounts payable balance is $24,000.

Required:

A. Prepare Frausto’s direct materials purchases budget by month for the first quarter.
B. Prepare Frausto’s cash disbursements schedule by month for the first quarter.
C. Prepare Frausto’s accounts payable schedule by month for the first quarter.