5.

Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared?

A.

Sales budget, cash budget, direct materials budget, direct labor budget

B.

Production budget, sales budget, direct materials budget, direct labor budget

C.

Sales budget, cash budget, production budget, direct materials budget

D.

Selling and administrative expense budget, cash budget, budgeted income statement, budgeted balance sheet

6.

Budgeted sales in Allen Company over the next four months are given below: Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainders are uncollectible. Given these data, cash collections for December should be:

A.

$138,000

B.

$133,500

C.

$120,000

D.

$103,500

Cash collections for December: