April May

Budgeted Sales $ 300,000.00 $ 500,000.00

Collection
Feb $ 23,000.00
March $ 182,000.00 $ 26,000.00
April $ 60,000.00 $ 210,000.00
May $ 100,000.00
June
Total Collection $ 265,000.00 $ 336,000.00
June Total
$ 200,000.00 $ 1,000,000.00

$ 23,000.00
$ 208,000.00
$ 30,000.00 $ 30,000.00
$ 350,000.00 $ 350,000.00
$ 40,000.00 $ 40,000.00
$ 420,000.00 $ 1,021,000.00
 April May June 2nd quarter July
Budgeted Sales in Units 50,000 75,000 90,000 215,000 80,000
Desired Ending Inventory 7,500 9,000 8,000 8,000
Total Production Requirement 57,500 84,000 98,000 223,000
Beg Inventory 5000 7,500 9,000 5,000
Units to be produced 52,500 76,500 89,000 218,000
 First Second Third
UNITS TO BE PRODUCED 60,000 90,000 150,000
MATERIAL REQUIREMENT PER UNIT 3 3 3
PRODUCTION NEEDS 180,000 270,000 450,000
DESIRED ENDING INVENTORY 54,000 90,000 60,000
TOTAL MATERIALS NEEDED 234,000 360,000 510,000
BEGINNING INVENTORY 36,000 54,000 90,000
MATERIALS TO BE PURCHASED 198,000 306,000 420,000
MATERIAL COST PER POUND 0.15 0.15 0.15
TOTAL COST OF DIRECT MATERIALS 29,700 45,900 63,000

CASH PAYMENTS

BEGINNING ACCOUNTS PAYABLE

1ST QUARTER PURCHASES
2ND QUARTER PURCHASES
3RD QUARTER PURCHASES
4TH QUARTER PURCHASES
TOTAL PAYMENT FOR DIRECT MATERIALS
Forth Year 2 First- Year 3
100,000 400,000 70,000
3 3 3
300,000 1,200,000 210,000
42,000 42,000
342,000 1,242,000
60,000 36,000
282,000 1,206,000
0.15 0.15
42,300 180,900