NIU Company's budgeted sales and direct materials purchases are as follows:

NIU's sales are 40% cash and 60% credit. It collects credit sales 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. NIU's purchases are 50% cash and 50% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase.
Instructions
(a) Prepare a schedule of expected collections from customers for March.
(b) Prepare a schedule of expected payments for direct materials for March.

Transcribed Image Text:

January February March Budgeted Sales $190,000 210,000 300,000 Budgeted Direct Materials Purchases $30,000 35,000 45,000