Q25

Question 25 (6 points) Susan's Silken Scarves Ltd. produces scarves in a variety of designer colours. 2021 Master budget data is as follows: 1 2 Quarter 3 Clan - Mar) (Apr - Jun) Dul-Sep) (Oct. Dec) Sales (all on account) $1.500,000 $1,800,000 $2,100,000 $2.400,000 Raw material purchases $450,000 $540,000 $630,000 5720,000 Direct labour wages $600,000 $720,000 $840,000 5960,000 Manufacturing overheard includes $50.000 depreciation per quarter) $150,000 $180,000 $210,000 $240,000 SG&A expenses includes $35,000 depreciation per quarter) $195,000 $225,000 $230,000 $235,000 Additional information: 1. 80% of sales are collected in the current quarter, 20% in the following quarter. 2. Current quarter raw material purchases are paid in the following quarter. 3. Direct labour, manufacturing overhead and SG&A expenses are paid in the quarter incurred. 4. Sales for the quarter ended December 31, 2020 were $1,200,000. 5. The accounts payable balance at the end of 2020 was $275,000. Required: For the third quarter of 2021 (use the space below and show your work) a) What were the total cash receipts? (2 marks) b) What were the total cash disbursements? (2 marks) c) What was the ending balance in accounts payable? (1 mark) d) What was the ending balance in accounts receivable? (1 mark) doo + sc od V Paragraph B I UA d) What was the ending balance in accounts receivable? (1 mark) Paragraph v B I U A 11 ko + 8. Part a) Part b) Part c) I Part d)