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Quaking Aspen Furniture Industries manufactures wooden dining chairs. The selling price of the wooden dining chairs is $ 2 0 per unit. The company is

Quaking Aspen Furniture Industries manufactures wooden dining chairs. The selling price of the
wooden dining chairs is $20 per unit. The company is preparing detailed budgets for the third quarter
(Third quarter includes July, August and September) and fourth quarter (Fourth quarter includes
October, November and December) and has assembled the following information to assist in the
budget preparation (see below tables). Sales for June totaled $1,000. The company's cost of direct
materials to be purchased for each month and the third quarter are provided in the second table below.
One-half of a month's purchases of Wood is paid for in the month of purchase; the remainder is paid for
in the following month. The accounts payable on July 1 for purchases of Wood during June will be
$400. Calculate the expected cash disbursements for direct materials (Wood) purchases for July.
Estimated unit sales for the next several month
Cost of raw materials to be purchased for each month and the third quarter are:
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sales on account will be collected in the month of the sale, 60% will be collected the month after the sale, 36% in the second month, and 4% will be uncollectable. Calculate the
expected cash collection for the month of September
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