Question
Nieto Companys budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $237,400 $36,500 February 251,400 39,800 March 336,600 41,500
Nieto Companys budgeted sales and direct materials purchases are as follows.
Budgeted Sales | Budgeted D.M. Purchases | ||||
January | $237,400 | $36,500 | |||
February | 251,400 | 39,800 | |||
March | 336,600 | 41,500 |
Nietos sales are 30% cash and 70% credit. Credit 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. Nietos purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. (Round answers to 0 decimal places, e.g. 2,500.)
(b) Prepare a schedule of expected payments for direct materials for March. (Round answers to 0 decimal places, e.g. 2,500.)
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