Appendix Shumway Enterprises has the following production planned for the first six months of next year:
January ...................    50,000.
February ................    45,000.
March .....................    55,000.
April .......................     60,000.
May ........................     65,000.
June ......................       70,000.
Each unit produced requires five pounds of direct materials at $6 per pound. Shumway wants to maintain an inventory balance equal to 10 percent of what is needed to meet next month’s production. Shumway pays for 90 percent of its purchases in the month of purchase to receive a 2 percent cash discount. The remaining purchases are paid in the month following purchase. Shumway indicates the following beginning balances:
Accounts payable ................     $600,000.
Direct materials ....................    $300,000 (50,000 pounds).

Required:

A. Prepare Shumway’s direct materials purchases budget by month for the first quarter.
B. Prepare Shumway’s cash disbursements schedule by month for the first quarter.
C. Prepare Shumway’s accounts payable schedule by month for the first quarter.