Dax Company forecasts the following sales in units for the next three months:

May 50,000

June 60,000

July 45,000

Each unit sells for $15.00 and costs $11.00 to purchase. Dax Company needs to have 40% of the next months sales in inventory at the end of each month and pays cash for 30% of purchases. The remainder of the purchases are paid for in the month following the purchase. The balance of Accounts Payable at the end of April is $375,000 and Dax has 16,000 units on hand.

Required:

1. Prepare a purchases budget in units for May and June.

2. Prepare a cash disbursements budget for purchases for May and June.