Question

Tilson corporation has projected sales and production units for the second quarter of the coming ear as fools

April May June

sales 55000 45000 65000

Production 65000 55000 55000

Cash-related production coss ae budget at 7 per unit produced of this production costs, 40% are paid in the month in which the are incurred and the lance in the following month Selling and administrative expenses will amount to $110000 per month. The accouns payable balance on March 31

Answer 1

Schedule for each month showing budgeted cash disbursements
	April	May	June
Production	65,000	55,000	55,000
Production cost per unit	$7	$7	$7
Production cost	$455,000	$385,000	$385,000
Cash disbursements:
Production costs this month (40%)	$182,000	$154,000	$154,000
Production costs prior month (60%)	$193,000	$273,000	$231,000
Selling and administrative	$110,000	$110,000	$110,000
Total disbursements	$485,000	$537,000	$495,000