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Part #1: K Company is planning its cash disbursements for the upcoming months. In June, it anticipates $72,000 in Purchases, $130,000 in Payroll, and $40,000 in Loan Payments. In July, it anticipates $77,000 in Purchases, $140,000 in Payroll, and $35,000 in Loan Payments. In August, it anticipates $84,000 in Purchases, $150,000 in Payroll, and $30,000 in Loan Payments. Purchases are usually paid 40 percent in the current month and 60 percent in the following month. Payroll is paid 80 percent in the current month and 20 percent in the following month. Loan Payments are paid in the month due. Prepare a schedule of cash disbursements for the month of July only.

Part #2: Q Company anticipates production for its second quarter to be 19,000 units in April, 24,800 units in May, and 33,000 units in June. Each unit of finished product requires four pounds of raw materials. Q Company maintains raw materials inventories equal to 25 percent of the following months pounds needed for production. The April 1 inventories are in line with Q Companys inventory policy. The anticipated cost per pound in April is $7while the anticipated cost per pound in May is $6.50. Prepare a Direct Materials Purchases Budget with columns for April and May only.

Part #3: F Companys Production Budget indicates that 12,500 units will be produced in April and 11,300 units in May. Workers are paid $21 per hour. It generally takes a worker 15 minutes (which is .25 hours) to make a unit. Prepare a Direct Labor Budget with columns forApril and May only.

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