1. Production Budget BVQ Corporation has experienced a number of out-of-stock situations with respect to its finished-goods inventories. Inventory at the end of May, for example, was only 20 units-an all-time low. Management desires to implement a policy whereby finished-goods inventory is 60% of the following month's sales. Budgeted sales for June, July, and August are expected to be 3,000 units, 3,500 units, and 4,300 units, respectively. Required: Determine the number of units that BVQ must produce in June and July. 2. Direct-Material Purchases Budget Lia Manufacturing plans to produce 20,000 units, 24,000 units, and 32,000 units, respectively, in October, November, and December. Each of these units requires five units of part no. 879 , which the company can purchase for $4 each. Lia has 35,000 units of part no. 879 in stock on September 30 . Required: Prepare a direct-material purchases budget for October and November if management desires to maintain an ending raw-material inventory equal to 40% of the following month's production needs. 3. Cash Collections: Quaker Corporation, a wholesaler, provided the following information: Customers pay 70% of their balances in the month of sale, 20% in the month following sale, and 10% in the second month following sale. The company pays all invoices in the month following purchase and takes advantage of a 2% discount on all amounts due. Cash payments for operating expenses in May will be $114,400; Quaker's cash balance on May 1 was $122,000. Required: Determine the following: a) Expected cash collections during May. b) Expected cash disbursements during May. c) Expected cash balance on May 31