Tony Stark and Company has projected sales and production in units for the second quarter of...
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Tony Stark and Company has projected sales and production in units for the second quarter of the coming year as follows: April May June Sales 50,000 40,000 60,000 Production 60,000 50,000 50,000 Cash-related production costs are budgeted at $5 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 $100,000 per month. The accounts payable balance on March 31 totals $190,000, which will be paid in April. All units are sold on account for $14 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $500,000 ($90,000 from February's sales and the remainder from March). Submission Instructions Prepare a schedule for each month showing budgeted cash disbursements for Clay Company. Prepare a schedule for each month showing budgeted cash receipts for Clay Company. 632 pum. Tony Stark and Company has projected sales and production in units for the second quarter of the coming year as follows: April May June Sales 50,000 40,000 60,000 Production 60,000 50,000 50,000 Cash-related production costs are budgeted at $5 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 $100,000 per month. The accounts payable balance on March 31 totals $190,000, which will be paid in April. All units are sold on account for $14 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $500,000 ($90,000 from February's sales and the remainder from March). Submission Instructions Prepare a schedule for each month showing budgeted cash disbursements for Clay Company. Prepare a schedule for each month showing budgeted cash receipts for Clay Company. 632 pum.
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Schedule of Cash Disbursements For Production Costs April May June Ac... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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