Required question a and b.

Western Company has projected sales and production in units for the second quarter of the coming year as follows: April May June Sales 55,000 45,000 65,000 Production 65,000 55,000 55,000 Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month, paid in the month incurred. The accounts payable balance on March 31 totals $193,000, which will be paid in April. All units are sold on account (as credit sales) for $16 each. There are no cash sales. 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 $520,000 ($100,000 from February's sales and the remainder 13 from March) 14 15 Required: Clearly label whether your calculations are for part a. or part b. 16 17 a. Prepare a schedule for each month showing budgeted cash disbursements for the Western Company. (5 marks) 18 19 b. Prepare a schedule for each month showing budgeted cash receipts for the Western Company. (5 marks) 20