Reference no: EM131821642

Assignment

Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June:

Sales Budget
	April	May	June	Total
Sales in units	13000	16500	14500	44000
Selling price per unit	x $40	x $40	x $40
Sales revenue	$520000	$660000	$580000	$1760000

All of the sales are on credit. 
Quagmire collects from customers as follows:

40% of sales in the month of sale 
35% in the month following the sale, and 
25% in the second month following the sale.

Cash receipts budget
	April	May	June	Total
Collect from current sales	208000	264000	232000	704000
Collect from last month	210000	182000	231000	623000
Collect from 2 mos. Prior	140000	150000	130000	420000
Cash receipts	$ 558000	$ 596000	$ 593000	$ 1747000

Quagmire expects cost of goods sold to be 60% of sales.

They keep 20% of next months expected cost of goods sold in ending inventory. Below are budgeted purchases of inventory.
All purchases are paid for in the SAME month as the purchase.

Purchases Budget
	April	May	June	Total
Budgeted cost of goods sold	312000	396000	348000	1056000
plus desired ending inventory	79200	69600	57600	57600
Total needs	391200	465600	405600	1113600
less beginning inventory	(62400)	(79200)	(69600)	(62400)
Cost of purchases	328800	386400	336000	1051200

Below is the budget for variable and fixed selling and administrative expenses.
Selling and admin expenses are paid in the month AFTER they are incurred.
Fixed expenses include depreciation of 36000 each month.

Sales and Admin Budget
	April	May	June	Total
Variable S&A expenses	52000	66000	58000	176000
Fixed S&A (including depreciation)	180000	180000	180000	540000

How much will Quagmire pay (in cash) for purchases in May?
How much does Quagmire pay for variable S&A expenses in May?
How much does Quagmire pay for fixed S&A expenses in May?