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only need help with 1) beginning inventory of direct materials in december and 2) payment for direct materials in december Question B-Budgeting The Johnston Company
only need help with
1) beginning inventory of direct materials in december and
2) payment for direct materials in december
Question B-Budgeting The Johnston Company had the following costs based on the production and sale of 40,000 units: 30% of selling price Other information: The company had the following budgeted sales for December, January, and February Month Sale in units) 10,000 300 The company has a policy of always maintaining the following inventory levels: Finished Goods Inventory 10 of next month's sales. Direct Materiais inventory = 40 of next month's production requirements The company's sales and collection history show that 10% of all sales are for cash and the accounts receivable are collected in the following way: 70% in the month of the sale 28 in the month after the sale Direct materials are paid for as follows: 90 in month of purchase, and 30 in the month after purchase $100.000 of direct materials were purchased in November Selling price per unit is $50 Bouired Calculate the total budgeted cash collections in February, portion of December sales that will be collected in January. Beginning inventory of direct materials in December, and the payment for direct materials in December. Enter the answers in the table below e cember les collected Payment for direct To ded collections in February Beginning direct materialeveory in DecemberStep by Step Solution
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