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Moorcroft Companys budgeted sales and direct materials purchases are as follows: Budgeted Sales Budgeted D.M. Purchases April $313,000 $41,000 May 289,000 60,000 June 339,000 60,000
Moorcroft Companys budgeted sales and direct materials purchases are as follows:
Budgeted Sales | Budgeted D.M. Purchases | |||
April | $313,000 | $41,000 | ||
May | 289,000 | 60,000 | ||
June | 339,000 | 60,000 |
Moorcrofts sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, 50% in the month following sale, and 26% in the second month following sale; 4% are uncollectible. Moorcrofts purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month following the purchase and 60% in the second month following the purchase.
Prepare a schedule of expected payments for direct materials for June.
Moorcroft Company Schedule of Expected Payment for Direct Materials | ||||||||
Purchases | April | May | June | |||||
April | $ | $ | $ | $ | ||||
May | ||||||||
June | ||||||||
Total Collections | $ | $ | $ |
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