= = = E = Normal v No Spacing Heading Q1: The Inventory purchases budget for a company is shown below: Sep purchases $240,000 Oct purchases $319,000 Nov purchases $197,000 25% of purchases are paid in the month of the purchase. The remainder are paid in the next month. Operating expenses were $237,000 of which $50,000 was depreciation. The company will declare and pay a dividend of $20,000. What should they budget for cash payments in November? 2: Grady manufactures medical supply kits. Projected production for the first months of production are (hint: no beginning inventory for October): Oct production 27,000 Nov production 28,000 There are four materials per kit at a cost of $2.89 each. The company desires to have enough materials on hand at month end to supply 20% of next month's production. Payments for material purchases are made 50% in the month purchased and the rest in the next month. Each kit uses 1.35 hours of direct labor at $15.00 per hour, payable in the month worked. Indirect costs are fixed per month at $108,000 and includes $20,000 of depreciation and are payable in the month incurred. What should they budget for cash payments for production costs in October