A company has projected sales and production in units for the second quarter of the year as follows: April May June Sales. Production...... 40 000 35 000 22 000 20 000 35 000 30 000 a) Cash production costs are budgeted at 5 per unit produced. Of these production costs, 25% are paid in the month in which they are incurred and the rest in the following month. Selling and administrative expenses (all paid in cash) amount to 65,000 per month. The accounts payable balance on March 31 totals 90,000, all of which will be paid in April. Prepare a schedule for each month of the second quarter showing budgeted cash disbursements for the Company. Show all relevant calculations. April May June Production units: Cash required per unit: = Production cost: Cash disbursements Production this month: Production prior month: Selling and admin cost: Total disbursements: b) Assume that all units will be sold for 15 each. Cash collections from sales are budgeted at 50% in the month of sales, 30% in the month following the month of sales and the remaining 20% in the second month following the month of sales. Accounts receivable on March 31 totaled $230,500 ($55,000 from February's sales and the remainder from March.) Prepare a schedule for each month in the second quarter showing budgeted cash receipts for the Company. Show all relevant calculations (see next page too!). April May June Budgeted sales: Selling price per unit: Total Sales: Cash receipts Feb Sales March Sales April Sales May Sales June Sales