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Nieto Companys budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $216,900 $38,000 February 250,400 41,600 March 336,500 39,700
Nieto Companys budgeted sales and direct materials purchases are as follows.
Budgeted Sales | Budgeted D.M. Purchases | ||||
January | $216,900 | $38,000 | |||
February | 250,400 | 41,600 | |||
March | 336,500 | 39,700 |
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 o decimal places, e.g. 2,500.) NIETO COMPANY Expected Collections from Customers March Total collections (b) Prepare a schedule of expected payments for direct materials for March. (Round answers to o decimal places, e.g. 2,500.) NIETO COMPANY Expected Payments for Direct Materials March Total payments
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