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Clay Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 54,000 62,000

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Clay Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 54,000 62,000 May 47,500 52,000 June 64,000 52,000 Cash-related production costs are budgeted at $5.4 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $140,000 per month. The accounts payable balance on March 31 totals $230,000, which will be paid in April. All units are sold on account for $14.4 each. Cash collections from sales are budgeted at 55% in the month of sale, 25% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. Accounts receivable on April 1 totaled $544,000 ($94,000 from February's sales and $450,000 from March's sales). Required: a. . Prepare a schedule for each month showing budgeted cash disbursements for Clay Corporation. (Round your final answer to nearest whole dollar.) Production cost Cash disbursement: April May June $ 372,000 $ 312,000 $ 312,000 Production costs this month Production costs prior month Selling and administrative Total disbursements 0 $ 0 $ 0 b. Prepare a schedule for each month showing budgeted cash receipts for Clay Corporation. (Round your final answer to nearest whole dollar.) April May June Total sales Cash receipts: February sales March sales April sales May sales June sales Total receipts 0 0 0

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