Tilson Corporation has projected sales and production in units for the second quarter of the coming...
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Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April 59,000 June 69,000 69,000 59,000 Sales Production May 49,000 59,000 Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $70,000 per month. The accounts payable balance on March 31 totals $192,000, which will be paid in April. All units are sold on account for $13 each. Cash collections from sales are budgeted at 50% in the month of sale, 35% in the month following the month of sale, and the remaining 15% in the second month following the month of sale. Accounts receivable on April 1 totaled $564,000 ($104,000 from February's sales and $460,000 from March's sales). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. Required A Required B Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. Production cost Cash disbursement: Production costs this month (40%) Production costs prior month (60.0%) Selling and administrative Total disbursements April May June Required A Required B Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. April May Total sales Cash receipts: February sales March sales April sales May sales June sales Total receipts June Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April 59,000 June 69,000 69,000 59,000 Sales Production May 49,000 59,000 Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $70,000 per month. The accounts payable balance on March 31 totals $192,000, which will be paid in April. All units are sold on account for $13 each. Cash collections from sales are budgeted at 50% in the month of sale, 35% in the month following the month of sale, and the remaining 15% in the second month following the month of sale. Accounts receivable on April 1 totaled $564,000 ($104,000 from February's sales and $460,000 from March's sales). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. Required A Required B Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. Production cost Cash disbursement: Production costs this month (40%) Production costs prior month (60.0%) Selling and administrative Total disbursements April May June Required A Required B Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. April May Total sales Cash receipts: February sales March sales April sales May sales June sales Total receipts June
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Required A April May June Production cost Production units 7 483000 413000 413000 Cash disbursement ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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