Question
Derby Companys budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted Purchases January $190,000 $30,000 February 210,000 35,000 March 300,000 45,000 Derbys
Derby Companys budgeted sales and direct materials purchases are as follows.
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| Budgeted Sales | Budgeted Purchases |
| January | $190,000 | $30,000 |
| February | 210,000 | 35,000 |
| March | 300,000 | 45,000 |
Derbys sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible.
Derbys purchases are paid 60% in the month of purchase, and 40% in the month following purchase.
A. Prepare a schedule of expected collections from customers for the first quarter.
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| January | February | March | Quarter |
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B. Prepare a schedule of expected payments for direct materials for the first quarter.
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| January | February | March | Quarter |
| January |
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| February |
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| March |
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| Total payments |
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
10th edition
9780077515904, 007802529X, 77515900, 978-0078025297
