Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 260 units in July and 400 units in August. Each unit requires 11 feet of wood at a cost of $0.90 per foot. Preston wants to always have 260 feet of wood on hand in materials inventory.

Compute Preston's direct materials purchases budget for July and August.

Fillmore, Inc., expects sales of its housing for electric motors to be $87,000, $76,000, and $89,000 for January, February, and March, respectively. Its variable selling and administrative expenses are 11 percent of sales, and fixed selling and administrative expenses are $14,000 per month. Compute Fillmores selling and administrative expense budget for January, February, and March.

Getty Company expects sales for the first three months of next year to be $215,000, $240,000 and $300,000, respectively. Getty expects 20 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month. Compute a schedule of Gettys cash receipts for the months of February and March.