Constellation Corp. has projected production and sales in units for the three months ending 7/31 as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Constellation Corp. has projected production and sales in units for the three months ending 7/31 as as follows: Production Sales May June July 140,000 120,000 110,000 120,000 103,000 130,000 Cash-related production costs are budgeted at $17 per unit produced. Of these production costs, 25% are paid in the month in w are incurred and the balance in the following month. Selling and administrative expenses will amount to $95,000 per month. The payable balance on May 1 totals $395,000, which will be paid in May. All units are sold on account for $35 each. Cash collections from sales are budgeted at 65% in the month of sale, 20% in the mon following the month of sale, and the remaining 15% in the second month following the month of sale. Accounts receivable on M $650,000 of which $185,000 was from March's sales and the remainder from April. Required: Prepare a schedule for Bach month showing budgeted cash disbursements for the Constellation Corp. Show all figures with decimal places. Use dollar signs for dollar figures. (4 points) 2. Prepare a schedule for each month showing budgeted cash receipts for Constellation Corp. Show all figures with no decima Use dollar signs for dollar figures. (4 Points) Constellation Corp. has projected production and sales in units for the three months ending 7/31 as as follows: Production Sales May June July 140,000 120,000 110,000 120,000 103,000 130,000 Cash-related production costs are budgeted at $17 per unit produced. Of these production costs, 25% are paid in the month in w are incurred and the balance in the following month. Selling and administrative expenses will amount to $95,000 per month. The payable balance on May 1 totals $395,000, which will be paid in May. All units are sold on account for $35 each. Cash collections from sales are budgeted at 65% in the month of sale, 20% in the mon following the month of sale, and the remaining 15% in the second month following the month of sale. Accounts receivable on M $650,000 of which $185,000 was from March's sales and the remainder from April. Required: Prepare a schedule for Bach month showing budgeted cash disbursements for the Constellation Corp. Show all figures with decimal places. Use dollar signs for dollar figures. (4 points) 2. Prepare a schedule for each month showing budgeted cash receipts for Constellation Corp. Show all figures with no decima Use dollar signs for dollar figures. (4 Points)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
If a= 3 m, determine the magnitudes of P and Q required to maintain the cable in the shape shown. DI 120 kN
-
What is a systems requirement, and how are systems requirements classified?
-
How does a company assess and mitigate the risk of fraud within an organization?
-
Discuss the relationship between investment risk and the expected rate of return on an investment. Explain why accounting information is useful in evaluating the risk/return trade-off inherent in all...
-
Reinsurance can be used by an insurer to solve several problems. Assume you are an insurance consultant who is asked to give recommendations concerning the type of reinsurance plan or arrangement to...
-
To calculate fixed, variable, and marginal costs you can follow this example table: Quantity (Q) Total Cost (TC) Fixed Cost (FC) Variable Cost (VC) Marginal Cost (MC) 0 [Enter TC at Q=0] [Enter FC at...
-
A double blind study was recently published where researchers were interested in testing whether a certain nutrient could possibly relieve urinary tract infection symptoms. What does "double-blind"...
-
The auditor normally uses two approaches to the audit of accounts payable. What are they and why are both used?
-
Should the IASB work towards either harmonizing or standardizing accounting policies on a worldwide basis?
-
Who should you write the design specification?
-
Periodic or cycle counts of selected inventory items are made at various times during the year rather than a single inventory count at year end. Which of the following is necessary if the auditor...
-
Specify which cost centre you think should be charged with the cost of a companys business rates.
-
In marketing as in other aspects of business, it is critical that professionals make sure to act in an ethical manner both legally and socially. In this age of interconnectedness, one unethical move...
-
What is the difference between adsorption and absorption?
-
For each description of a cost change in items a through \(g\), indicate whether the cause is due to (1) underlying cost behavior, (2) inflation or deflation, (3) supply or supplier cost adjustments,...
-
Part One: Measuring Efficiency and Effectiveness of Discretionary Cost My Fitness Inc., an athletic club, hires athletic trainers at its facilities primarily to offer individualized training sessions...
-
Indicate whether the actions listed a through \(h\), primarily represent initiatives for cost containment (CC), cost avoidance (CA), or cost reduction (CR). Indicate what costs were contained,...
Study smarter with the SolutionInn App