Refer to the information in PA9-1. Bamboo You, Inc., had \($9,800\) cash on hand at April 1. Of its sales, 70 percent is in cash. Of the credit sales, 40 percent is collected during the month of the sale, and 60 percent is collected during the month following the sale.

Of direct material purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled \($2,000\). All other operating costs are paid during the month incurred. Monthly fixed manufacturing over head includes \($150\) in depreciation.

Required:

Prepare the following for Bamboo You for quarter 2:

1. Budgeted cash receipts. Include each month (April-June) as well as quarter 2 totals.

2. Budgeted cash payments.

3. Cash budget.

Data from PA9-1

Bamboo You, Inc. This company manufactures bamboo picture frames that sell for \($20\) each. Each frame requires 4 linear feet of bamboo, which costs \($1.50\) per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages \($10.00\) per hour.

Bamboo You has the following inventory policies:

Ending finished goods inventory should be 40 percent of the next month’s sales. Ending raw materials inventory should be 30 percent of the next month’s production. Expected unit sales (frames) for the upcoming months follow:

Variable manufacturing overhead is incurred at a rate of \($0.25\) per unit produced. Annual fixed manufacturing overhead is estimated to be \($7,200\) (\($600\) per month) for an expected production of 4,000 units for the year. Selling and administrative expenses are estimated at \($650\) per month plus \($0.60\) per unit sold.

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March 275 April 250 May June 300 400 July 375 August 425