1.Saxim Company expects to sell 30,000 units, 40,000 units and 50,000 units in April, May and June,...
Question:
1.Saxim Company expects to sell 30,000 units, 40,000 units and 50,000 units in April, May and June, respectively. If there is a policy of holding 30% of next month's sales at the end of the month, how many units should be produced in May?
2. Credit sales for April, May, and June are $40,000, $60,000, and $30,000, respectively. Collection patterns are: 25% of any month's sales are collected in the month the sale is made; 50% of any month's sales are charged the following month; 20% of any month's sales are charged in the second month after the sale (the balance cannot be charged). What would be the cash collections from customers in June?
3. Ace Company expects unit sales of its single product to be 8,000, 12,000 and 6,000 units in May, June and July, respectively. (1) If Ace has a policy to retain 30% of the next month's sales at the end of the month, (2) 60% of each month's purchases are paid in the month purchased and 40% the following month, and (3) each month the unit costs $7, how much should the cash payments for purchases be in June?
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac