Question 25 (6 points) Susan's Silken Scarves Ltd. produces scarves in a variety of designer colours....

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Question 25 (6 points) Susan's Silken Scarves Ltd. produces scarves in a variety of designer colours. 2021 Master budget data is as follows: Quarter Sales (all on account) Raw material purchases 1 2 3 4 (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) $1,500,000 $1,800,000 $2,100,000 $2,400,000 $450,000 $540,000 $630,000 $720,000 $600,000 $720,000 $840,000 $960,000 Manufacturing overheard (includes $50,000 depreciation per quarter) $150,000 $180,000 $210,000 $240,000 $195,000 $225,000 $230,000 $235,000 Direct labour wages SG&A expenses (includes $35,000 depreciation per quarter) 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 second 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) Question 25 (6 points) Susan's Silken Scarves Ltd. produces scarves in a variety of designer colours. 2021 Master budget data is as follows: Quarter Sales (all on account) Raw material purchases 1 2 3 4 (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) $1,500,000 $1,800,000 $2,100,000 $2,400,000 $450,000 $540,000 $630,000 $720,000 $600,000 $720,000 $840,000 $960,000 Manufacturing overheard (includes $50,000 depreciation per quarter) $150,000 $180,000 $210,000 $240,000 $195,000 $225,000 $230,000 $235,000 Direct labour wages SG&A expenses (includes $35,000 depreciation per quarter) 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 second 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)

Answer rating: 100% (QA)

Answera Total cash receipts 80 of Q2 sales 081800000 1440000 20 of Q1 sales fr... View the full answer