1. Royal Company is preparing budgets for the quarter ending June 30.

   Budgeted sales for the next five months are:

   April 20,000 units

   May 50,000 units

   June 30,000 units

   July 25,000 units

   August 15,000 units

   The selling price is $10 per unit.

   For May and June, find:
   1. Total Cash Payments
   2. Ending balance of Accounts Payable

PLEASE SHOW ALL WORK

Expected Cash Disbursement for Materials Royal pays $0.40 per pound for its materials. One-half of a month's purchases is paid for in the month of purchase (paid this period); the other half is paid in the following month (payable this period). The March 31 accounts payable balance is $12,000. April Accounts Payable BB-$12,000 (to be paid in full in April) April Purchases - 140,000 pounds * $0.40 - $56,000 April Payment for Purchases - 56,000 * 50%-$28,000 in April $28,000 in May Repeat process in May, June Recall that Royal pays 40 cents per pound for direct materials. It pays for its purchases one-half in the month of the purchase and one-half in the following month. At the beginning of the quarter, Royal owed creditors $12,000 for purchases of direct materials. Let's begin the expected cash disbursement for direct materials schedule