Edwards Company has projected sales and production in units for the second quart

Question

Edwards Company has projected sales and production in units for the second quarter of the coming year as follows April May 26.000 une 16.000 21,000 21,000 26,000 21.000 Sales Production Required a. Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 30% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses (all paid in cash) will amount to $70,000 per month. The accounts payable balance on March 31 totals $83,000, all of which will be paid in April. Prepare a schedule for eaclh month showing budgeted cash disbursements for Edwards Company. (Omit the "$" sign in your response.) Ma une Production cost Cash disbursement Production this month Production prior month Selling and administration Total disbursement

Explanation / Answer

a)

b)

Working

April May June Production Cost                                   147,000          147,000          182,000 Cash Disbursement Production this month                                     44,100            44,100            54,600 Production Prior month                                     83,000          102,900          102,900 Selling and Administrator                                     70,000            70,000            70,000 Total Disbursement                                   197,100          217,000          227,500

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