Clay Corporation has projected sales and production in units for the second quarter of the coming year as follows:

	April	May	June
Sales	52,000	42,000	62,000
Production	61,000	51,000	51,000

Required:

a.

Cash-related production costs are budgeted at $5.35 per unit produced. Of these production costs, 60% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $120,000 per month. The accounts payable balance on March 31 totals $210,000, which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for Clay Corporation.

	April	May	June
Production Cost
Cash Disburment
Production Cost this month
Production Cost prior month
Selling and adminstrative
Total Disbursements

b.

Assume that all units are sold on account for $14.25 each. Cash collections from sales are budgeted at 60% in the month of sale, 25% in the month following the month of sale, and the remaining 15% in the second month following the month of sale. Accounts receivable on April 1 totaled $522,000 ($92,000 from February's sales and $430,000 from Marchs sales) Prepare a schedule for each month showing budgeted cash receipts for Clay Corporation. (Do not round intermediate calculations.)

	April	May	June
Total sales
Cash Recipients:
February Sales
March Sales
April Sales
May Sales
June Sales
Total receipts