Preparing a Schedule of Cash Collections on Accounts Receivable Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected: May $84,000 June 100,800 July 77,000 August 88,000 September 90,000 Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers. Kailua and Company Schedule August September June: $ % $ 0 July: $ % $ % 11 O August: % $ X % September: % Total cash receipts Feedback Check My Work Partially correct Direct Materials Purchases Budget Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.12 per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings for the next 4 months as follows: Units July 3,500 August 4,400 September 4,900 October 6,300 Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy the inventory policy. Required: Prepare a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole value. Langer Company Direct Materials Purchases Budget For July, August and September July August September Total Units to be produced 3,500 4,400 4,900 12,800 Direct materials per unit (ounces) 15 15 15 15 Production needs 52,500 66,000 73,500 192,000 Desired ending inventory (ounces) 10,500 X Total needs Less: Beginning inventory Direct materials to be purchased (ounces) Cost per ounce $0.12 $0.12 $0.12 $0.12 Total purchase cost $ Feedback Check My Work Partially correct