Solution to problem 9

Solution to problem 9 - DATA INPUT Budgeted Sales on...

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DATA INPUT Budgeted Sales on Account: Collection Schedule: June $49,000 In month of sale 70 % July 60,000 In 1st month after sale 15 % August 70,000 In 2nd month after sale 10 % September 80,000 In 3rd month after sale 4 % October 90,000 Uncollectible 1 % November 100,000 December 85,000 SOLUTION 1. Cash collections in October: Month Amount Collected in October of Sale Sales % Collected Collection July $60,000.00 x 0.04 2,400 August 70,000 x 0.10 7,000 September 80,000 x 0.15 12,000 October 90,000 x 0.70 63,000 Total 84,400 2. Cash collections in 4th quarter from credit sales in 4th quarter: Amount Collected Credit Month of Sale Sales October November December October $90,000 $63,000 $13,500 $9,000 November 100,000 70,000 15,000 December 85,000 59,500 Total $63,000 $83,500 $83,500 Total collections in 4th quarter from credit sales in 4th quarter $230,000
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DATA INPUT April 10,000 desk-and-chair sets May 12,000 desk-and-chair sets June 15,000 desk-and-chair sets Each desk-and chair set requires: 10 board feet of pine planks 1.5 hours of direct labor Costs for material: $0.50 per board foot $20.00 per hour for direct-hour wages and fringe benefits Division ends each month with enough wood to cover next month's production requirements of : 10% Division ends each month with enough finished-goods inventory to cover next month's sales of: 20% Selling price per set $50 SOLUTION 1. Complete sales budget schedule:
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Solution to problem 9 - DATA INPUT Budgeted Sales on...

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