Under Cash Disburshements:

What numbers was used in order to get the information under "Production Costs prior month (60%)

April = 190,000 ? May = 180,000 ? June = 150,000 ?

Thank you.

Clay Corporation has projected sales and production in units for the second quarter of the coming year as follows: April May June 50,000 40,000 60.000 Sales Cash-related production costs are budgeted at $5 per unit produced, Of these production eosts 40% arepaidinthemonthin which they are incurred and the balance in the following month -Selling and administrative expenses will amount to $100.000 per month The oalance on March 31 totals $190.000 which will be paid in April. All units are sold on account for $14 each. 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 $500,000 ($90,000 from February's sales and $410,000 from March's sales). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Clay Corporatiorn b. Prepare a schedule for each month showing budgeted cash receipts for Clay Corporation. a. Apri May Production units Production costs Cash disbursements: $5 Pronctionrester urt -moon "soooo soon oooo $300.000 S250000 $250,000 300,000 40 ApMay costs this month (40%) Production costs prior month (60%) $120,000 5100,000 $100.000 4190.000. 180,000 150,000 ling and administrative otal dis 100,000 100,000 100,000 000 $350,000 $410 000