Question
Sweet Acacia Company's budgeted sales and direct materials purchases are as follows: Budgeted Sales Budgeted Direct Materials Purchases January $194,000 $28,000 February 199,000 33,000 March
Sweet Acacia Company's budgeted sales and direct materials purchases are as follows:
| Budgeted Sales | Budgeted Direct Materials Purchases | |||
|---|---|---|---|---|
| January | $194,000 | $28,000 | ||
| February | 199,000 | 33,000 | ||
| March | 277,000 | 46,000 |
Sweet Acacia's sales are 40% cash and 60% credit. It collects credit sales 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Sweet Acacia's purchases are 50% cash and 50% 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 from customers for March.
| NIU COMPANY Schedule of Expected Collections from Customers For the Month Ending March 31, 2020 | |||
| Januarycredit sales | $ | ||
| Februarycredit sales | |||
| Marchcash sales | |||
| Marchcredit sales | |||
| Total expected collections from customers | $ | ||
Prepare a schedule of expected payments for direct materials for March.
| NIU COMPANY Schedule of Expected Payments for Direct Materials For the Month Ending March 31, 2020 | |||
| Februarycredit payments | $ | ||
| Marchcash payments | |||
| Marchcredit payments | |||
| Total expected payments | $ | ||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Probability And Statistics For Engineering And The Sciences
Authors: Jay L. Devore
9th Edition
1305251806, 978-1305251809
