Blackwelder Music,Inc In Addition to the Above Operating Costs,enough Keyboards Are Purchased

Blackwelder Music,Inc.
Blackwelder Music,Inc.sells electronic keyboards.The following information regarding operating costs has been extracted from budgets of Blackwelder Music for December of this year and the first few months of next year:
$\begin{array}{lllll}&\text{Dec.}&\text{Jan}&\text{Feb.}&\text{Mar.}\\\hline\text { Payroll } & \$ 12,000 & \$ 13,000 & \$ 22,000 & \$ 16,000 \\\text { Insurance } & 4,000 & 4,000 & 4,000 & 4,000 \\\text { Rent } & 6,000 & 6,000 & 6,000 & 6,000 \\\text { Depreciation } & 2,000 & 2,000 & 2,000 & 2,000 \\ \text { Taxes } & 1,200 & 1,400 & 2,300 & 2,000\end{array}$ In addition to the above operating costs,enough keyboards are purchased each month to maintain the inventory at 40 percent of the projected next month's sales.The firm is expected to be in compliance with this policy on December 1.Budgeted sales are:
$\begin{array}{lllll}&\textbf{Dec.}&\textbf{Jan}&\textbf{Feb.}&\textbf{Mar.}&\textbf{Apr}\\\text { Budgeted sales in units: } & 40&45&60&50&40\\\end{array}$ Refer to Blackwelder Music,Inc.The average cost of a keyboard is $500.Merchandise is paid for in the month following its purchase.All other expenses are paid in the month in which they are incurred.
Prepare a purchases budget for December through March; then prepare a cash disbursements budget for Blackwelder Music,Inc.for the first three months of next year.