Part #1: K Company is planning its cash disbursements for theupcoming months. In June, it anticipates $72,000 in Purchases,$130,000 in Payroll, and $40,000 in Loan Payments. In July, itanticipates $77,000 in Purchases, $140,000 in Payroll, and $35,000in Loan Payments. In August, it anticipates $84,000 in Purchases,$150,000 in Payroll, and $30,000 in Loan Payments. Purchases areusually paid half in the current month and half in the followingmonth. Payroll is paid 70 percent in the current month and 30percent in the following month. Loan Payments are paid in the monthdue. Prepare a schedule of cash disbursements for the month of Julyonly.
Part #2: Q Company anticipates production for its second quarterto be 18,000 units in April, 28,400 units in May, and 36,000 unitsin June. Each unit of finished product requires four pounds of rawmaterials. Q Company maintains raw materials inventories equal to25 percent of the following month’s pounds needed for production.The April 1 inventories are in line with Q Company’s inventorypolicy. The anticipated cost per pound in April is $6 while theanticipated cost per pound in May is $6.25. Prepare a DirectMaterials Purchases Budget with columns for April and May only.
Part #3: F Company’s Production Budget indicates that 13,000units will be produced in April and 12,300 units in May. Workersare paid $19 per hour. It generally takes a worker 15 minutes(which is .25 hours) to make a unit. Prepare a Direct Labor Budgetwith columns for April and May only.
