Sales Budget Selling price is $15 per unit Sales by month: 0 April 25,000 units o May 50,000 units o June 40,000 units o July 30,000 units 0 August 20,000 units Cash Collections 60% collected in month of sale 40% collected in the month after sale Accounts receivable at the end of March is $25,000 and it will be collected in April Production Budget Ending inventory is 25% of next month's budgeted sales On March 31st there were 5,000 units on hand Direct Materials Budget 5 pounds of material are required for each unit of product Ending inventory is 10% of the following month's production On March 31st there was 10,000 pounds of material on hand The cost of material is $0.50 per pound Cash Disbursements 60% will be paid in the month of purchase 40% will be paid in the following month There was a balance in accounts payable on March 31st of $10,000 that will be paid in April Cash Budget The April 1 cash balance is $50,000 The company maintains a minimum cash balance of $70,000 For April, May, and June there will be the following expenses: O Direct labor - $20,000, $22,000 and $24,000 O Manufacturing overhead - $50,000, $75,000, and $60,000 o Selling and administrative expenses - $60,125, $70,000, and $75,000 A divided of $50,000 will be paid in April $300,000 in equipment purchases will be paid in May and $350,000 in June $2,000 of interest will be paid in May to repay a loan