Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 56,000 66,000 May 46,000 56,000 June 66,000 56,000 Cash-related production costs are budgeted at $4 per unit produced. Of these production costs, 25% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $40,000 per month. The accounts payable balance on March 31 totals $194,000, which will be paid in April. All units are sold on account for $10 each. Cash collections from sales are budgeted at 50% in the month of sale, 40% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $531,000 ($101,000 from February's sales and $430,000 from March's sales). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. April May June Production cost Cash disbursement: Production costs this month (25%) Production costs prior month (75.0%) Selling and administrative Total disbursements Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 56,000 66,000 May 46,000 56,000 June 66,000 56,000 Cash-related production costs are budgeted at $4 per unit produced. Of these production costs, 25% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $40,000 per month. The accounts payable balance on March 31 totals $194,000, which will be paid in April. All units are sold on account for $10 each. Cash collections from sales are budgeted at 50% in the month of sale, 40% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $531,000 ($101,000 from February's sales and $430,000 from March's sales). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. April May June Total sales Cash receipts: February sales March sales April sales May sales June sales Total receipts
