Sheffield Companys budgeted sales and direct materials purchases follow. January was the first month of operations.

Budgeted sales:

January $139,300; February $189,900; March $251,900

Budgeted direct materials purchases:

January $39,700; February $35,300; March $40,300

Sheffields sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale.

Sheffields purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase.

Prepare a schedule of expected collections for January, February, and March.

Sheffield Company Expected Collections
		January		February		March
Collections:
Cash sales		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Collections of credit sales:
January sales		enter a dollar amount		enter a dollar amount		enter a dollar amount
February sales		enter a dollar amount		enter a dollar amount		enter a dollar amount
March sales		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total collections		$enter a total amount		$enter a total amount		$enter a total amount

Question Part Score

--/5

Prepare a schedule of expected payments for direct materials for January, February and March.

Sheffield Company Expected Payments
		January		February		March
Payments:
Cash purchases		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Payment of credit purchases:
January purchases		enter a dollar amount		enter a dollar amount		enter a dollar amount
February purchases		enter a dollar amount		enter a dollar amount		enter a dollar amount
March purchases		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total payments		$enter a total amount		$enter a total amount		$enter a total amount