Comfy Pillows makes decorative throw pillows for home use. The following information was taken from the...
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Comfy Pillows makes decorative throw pillows for home use. The following information was taken from the Comfy Pillows sales budget: (Click the icon to view the first quarter sales budget.) Assume the following additional information was gathered about the types of sales made in the fourth quarter (October through December) of the previous year: (Click the icon to view the fourth quarter sales budget.) The following information was taken from the Comfy Pillows direct materials budget: (Click the icon to view information from the direct materials budget.) Read the requirements Requirement 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter Comfy Pillows Cash Collections Budget For the Quarter Ended March 31 Cash sales Collections on credit sales: 75% of credit sales made last month 15% of credit sales made two months ago 8% of credit sales made three months ago Total cash collections nstructor January 187000 February 204000 March 289000 1st Quarter 680000 Data table Comfy Pillows Excerpt from Direct Materials Budget - X Data table Total cost of DM purchases For the Quarter Ended March 31 January February March 1st Quarter $ 1,357,200 $ 1,588,200 $ 2,140,800 $ 5,086,200 Assume that the total cost of direct materials purchases in December was $725,000. The company pays. 40% of its direct materials purchases in the month of purchase, and pays the remaining 60% in the month after purchase. Print Data table Comfy Pillows Sales Budget: Type of Sale For the Quarter Ended December 31 Type of Sale: Cash sales (10%) Credit sales (90%) October November December 4th Quarter $ 142,400 $ 1,281,600 151,500 $ 137,000 $ 430,900 1,363,500 1,233,000 $ Total sales revenue $ 1,424,000 $ 1,515,000 $ 1,370,000 $ 3,878,100 4,309,000 Comfy Pillows Sales Budget: Type of Sale For the Quarter Ended March 31 Requirements 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter. 2. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the quarter. Type of Sale: Cash sales (10%) Credit sales (90%) January $187,000 1,683,000 February $204,000 1,836,000 March $289,000 2,601,000 1st Quarter $680,000 $6,120,000 Total sales revenue $1,870,000 $2,040,000 $2,890,000 $6,800,000 The company's collection history indicates that 75% of credit sales is collected in the month after the sale, 15% is collected two months after the sale, 8% is collected three months after the sale, and the remaining 2% is never collected. Print Done Print Done Done Clear all Check answer Comfy Pillows makes decorative throw pillows for home use. The following information was taken from the Comfy Pillows sales budget: (Click the icon to view the first quarter sales budget.) Assume the following additional information was gathered about the types of sales made in the fourth quarter (October through December) of the previous year: (Click the icon to view the fourth quarter sales budget.) The following information was taken from the Comfy Pillows direct materials budget: (Click the icon to view information from the direct materials budget.) Read the requirements Requirement 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter Comfy Pillows Cash Collections Budget For the Quarter Ended March 31 Cash sales Collections on credit sales: 75% of credit sales made last month 15% of credit sales made two months ago 8% of credit sales made three months ago Total cash collections nstructor January 187000 February 204000 March 289000 1st Quarter 680000 Data table Comfy Pillows Excerpt from Direct Materials Budget - X Data table Total cost of DM purchases For the Quarter Ended March 31 January February March 1st Quarter $ 1,357,200 $ 1,588,200 $ 2,140,800 $ 5,086,200 Assume that the total cost of direct materials purchases in December was $725,000. The company pays. 40% of its direct materials purchases in the month of purchase, and pays the remaining 60% in the month after purchase. Print Data table Comfy Pillows Sales Budget: Type of Sale For the Quarter Ended December 31 Type of Sale: Cash sales (10%) Credit sales (90%) October November December 4th Quarter $ 142,400 $ 1,281,600 151,500 $ 137,000 $ 430,900 1,363,500 1,233,000 $ Total sales revenue $ 1,424,000 $ 1,515,000 $ 1,370,000 $ 3,878,100 4,309,000 Comfy Pillows Sales Budget: Type of Sale For the Quarter Ended March 31 Requirements 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter. 2. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the quarter. Type of Sale: Cash sales (10%) Credit sales (90%) January $187,000 1,683,000 February $204,000 1,836,000 March $289,000 2,601,000 1st Quarter $680,000 $6,120,000 Total sales revenue $1,870,000 $2,040,000 $2,890,000 $6,800,000 The company's collection history indicates that 75% of credit sales is collected in the month after the sale, 15% is collected two months after the sale, 8% is collected three months after the sale, and the remaining 2% is never collected. Print Done Print Done Done Clear all Check answer
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