1. Royal Company is preparing budgets for the quarter ending June 30th. The selling price is $10 per unit. Budgeted sales for the next five months are:

April 20,000 units May 50,000 units June 30,000 units July 25,000 units August 15,000 units

All sales are on account. Royals collection pattern is 70% collected in the month of sale, 25% collected in the month following sale, 5% uncollectible. In April, the March 31st accounts receivable balance of $30,000 will be collected in full.

Prepare the sales budget and schedule of expected cash collections for the quarter ending June 30th.

2. The management at Royal Company wants ending inventory to be equal to 20% of the following months budgeted sale sin units. On march 31, 4,000 units were on hand. Prepare the production budget.

1. Royal Company is preparing budgets for the quarter ending June 30th. The selling price is $10 per unit. Budgeted sales for the next five months are:

April 20,000 units May 50,000 units June 30,000 units July 25,000 units August 15,000 units

All sales are on account. Royals collection pattern is 70% collected in the month of sale, 25% collected in the month following sale, 5% uncollectible. In April, the March 31st accounts receivable balance of $30,000 will be collected in full.

Prepare the sales budget and schedule of expected cash collections for the quarter ending June 30th.

2. The management at Royal Company wants ending inventory to be equal to 20% of the following months budgeted sale sin units. On march 31, 4,000 units were on hand. Prepare the production budget.