Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow:

Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow:

July August September
Budgeted sales $ 58,000 $ 74,000 $ 54,000
Budgeted cash payments for
Direct materials 15,960 13,240 13,560
Direct labor 3,840 3,160 3,240
Factory overhead 20,000 16,600 17,000

Sales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $44,800 in accounts receivable; $4,300 in accounts payable; and a $4,800 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($3,800 per month), and rent ($6,300 per month).

image text in transcribed

(1) Prepare a cash receipts budget for July, August, and September. BUILT-TIGHT Cash Receipts Budget For July, August, and September July August September Less: ending accounts receivable Cash receipts from: 01 Total cash receipts S 0S 0S 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance services an integrated approach

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

15th edition

978-0133125634, 9780133423815, 133125637, 133423816, 978-0133125689

More Books

Students also viewed these Accounting questions

Question

What does this public not want on this issue?

Answered: 1 week ago

Question

What does this public want on this issue?

Answered: 1 week ago