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

	April	May	June
Sales	20,000	10,000	15,000
Production	15,000	15,000	20,000

Required:

a.

Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 25% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses (all paid in cash) will amount to $70,000 per month. The accounts payable balance on March 31 totals $77,000, all of which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for Edwards Company. (Omit the "$" sign in your response.)

	April	May	June
Production cost	$	$	$
Cash disbursement:
Production this month
Production prior month
Selling and administration
Total disbursement	$	$	$

b.

Assume that all units are sold on account for $19 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $168,000 ($38,000 from February's sales and the remainder from March sales.) Prepare a schedule for each month showing budgeted cash receipts for Edwards Company. (Omit the "$" sign in your response.)

	April	May	June
Total sales	$	$	$
Cash receipts:
February sales
March sales
April sales
May sales
June sales
Total receipts	$	$	$