Sand Company has the following expected sales for the next several months for its product which sells for $10 per unit:

September $450,000

October $500,000

November $400,000

Sand buys the product from wholesalers at a cost that is 70 % of the sales price. Sand has a policy of keeping 50% of what is needed for next months sales in inventory. Sand pays for 40 % of purchases in the month of purchase and the remaining 60 % in the following month. The accounts payable balance at August 31 is $200,000 and there are 20,000 units in August ending inventory.

Required:

1. Prepare a purchases budget in units for September and October.

2. Prepare a cash disbursements budget for purchases for September and October.