Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operation:

a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.

b. Forty-percent of credit sales are collected in the month of the sale and 60% in the following month.

c. The ending finished goods inventory equals 20% of the following month's unit sales.

d. The ending raw materials inventory equals 10% of the following month's raw materials cost $2.00 per pound.

e. Thirty-percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.

f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.

g. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000.

Prepare the following budgets for July and August:

1. Sales budget with cash collections

2. Production budget

3. Raw materials budget with cash disbursement

4. Direct labor budget including cash requirements

5. Manufacturing overhead budget with cash disbursements; assume fixed overhead cost per month total $30,000 including depreciation expense of $5,000 per month.

6. Selling and administration budget with cash disbursements.