Answer Happy

Prepare a schedule of cash disbursements for raw materials
purchases by month and in total
Julia has just got her MBA and started working for Mainely Lobster Inc., a manufacturer of frozen lobster rolls that are sold across the country. Julia is a management trainee in the CFO's office, and one of her job responsibilities is to help the CFO, Mr. Bean, prepare a master budget for the upcoming fiscal quarter ending on January 31, 2022 (i.e., the fiscal quarter includes financial results for November, December, and January). The company sells a foot-long lobster roll for $45 each. Budgeted unit sales for the next four months are as follows: November December January February March 40,000 46,000 44,000 38,000 36,000 Budgeted sales in units Sales are collected in the following pattern: 40 percent in the month the sales are made, and the remaining 60 percent in the following month. The projected balance of accounts receivable on November 1, 2021, is $972,000, all of which will be collected in November. Bad debts are negligible and can be ignored. The company desires an ending finished goods inventory at the end of each moth equal to 10 percent of the budgeted unit sales for the next month. Half a pound of lobster meat is required to make one foot-long lobster roll. The company desires ending raw materials inventory at the end of each month equal to 20% of the following month's production needs. A pound of lobster meat is $50. Raw material purchases are paid for in the following pattern: 30 percent of a month's purchases is paid for in the month of purchase; the remaining 70 percent is paid for in the following month. The projected balance of accounts payable on November 1, 2021, is $651,700, all of which will be collected in November. Summing up costs of direct materials, direct labor, and manufacturing overhead, cost of goods sold is $35 per unit. (Assuming the cost of direct labor and manufacturing overhead is variable and it is $10 per unit. Based on the month's required production, the total cost is paid in cash at the end of each month.) Monthly selling and administrative expenses for the company are given below: Variable selling and administrative expenses $4 per unit Fixed selling and administrative expenses $50,000 in total, including $20,000 depreciation expense Monthly interest expense for its long-term notes payable is $600, paid in cash at the end of each month.