The cost of production includes $1.20 for direct labor which is paid the month that it is incurred and $0.95 for direct materials which are purchased JIT (no inventory) and paid for 60 days after purchase. Variable overhead is $0.50 per unit and incurred with production and paid 30 days after they are incurred. Fixed overhead is $18,500 per month and paid as incurred.

Month Units Selling Price

March 30,000 $5.20

April 80,000 $5,20

May 80,000 $5.60

June 40,000 $5.60

1. Prepare a cash disbursement budget for June for production.