Marino Company Has Projected Sales and Production in Units for the Second

Marino Company has projected sales and production in units for the second quarter of the year as follows:
$$\begin{array} { | l | c | c | c | } \hline & \text { April } & \text { May } & \text { June } \\\hline \text { Sales } & 30,000 & 20,000 & 25,000 \\\hline \text { Production } & 25,000 & 25,000 & 30,000 \\\hline\end{array}$$
Required:
a. Cash production costs are budgeted at $6 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Marketing and administrative expenses (all paid in cash) amount to $60,000 per month. The accounts payable balance on March 31 totals $96,000, all of which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for Marino Company.
b. Assume that all units will be sold on account for $15 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 March 31 totaled $255,000 ($45,000 from February's sales and the remainder from March.) Prepare a schedule for each month showing budgeted cash receipts for Marino Company.

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