Question
In: Accounting
Kuzma Foods, Inc. has budgeted sales for June and July at $670,000.00 and $720,000.00, respectively. Sales...
Kuzma Foods, Inc. has budgeted sales for June and July at $670,000.00 and $720,000.00, respectively. Sales are 80% credit, of which 60% is collected in the month of sale and 40%
is collected in the following month. What is the budgeted Accounts Receivable balance on July 31?
A. $230,400.00
B. $288,000.00
C. $214,400.00
D. $576,000.00
2)
Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year:
|
Jan |
Feb |
March |
|
| Sales
(30% cash) |
$400,000.00 |
$700,000.00 |
$900,000.00 |
The company collects 60% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February.
A. $406,000.00
B. $700,000.00
C. $504,000.00
D. $616,000.00
Solutions
Expert Solution
| ans 1 | |||||
| June | July | ||||
| Sales | 670,000 | 720,000 | |||
| Cash sales | 134000 | 144000 | |||
| credit sales | 536,000 | 576,000 | |||
| Collection of credit sales | |||||
| In the month of sales | 321600 | 345600 | |||
| Next month of sales | 214400 | ||||
| Receivable balance | $ 230,400.00 | ||||
| ans = option A | $ 230,400.00 | ||||
| ans 2 | |||||
| Jan | Feb | March | |||
| i | Sales | $400,000.00 | $700,000.00 | $900,000.00 | |
| ii | Cash sales | $120,000.00 | $210,000.00 | $270,000.00 | |
| iii | credit sales | $ 280,000.00 | $ 490,000.00 | $ 630,000.00 | |
| Collection of credit sales | |||||
| iv | In the month of sales | 168000 | 294000 | ||
| v | Next month of sales | 112000 | |||
| vi=ii+iv+v | Collection from customer | $616,000.00 | |||
| Ans = option D | $616,000.00 |
ekkarill92 answered 3 years agoRelated Solutions
Kuzma Foods, Inc. has budgeted sales for June and July at $690,000 and $745,000, respectively. Sales...
Kuzma Foods, Inc. has budgeted sales for June and July at
$690,000 and $745,000, respectively. Sales are 80% credit, of
which 70% is collected in the month of sale and 30% is collected
in the following month. What is the budgeted Accounts Receivable
balance on July 31?
A. 596,000
B. 223,500
C. 165,600
D. 178,800
ABC Company’s budgeted sales for June, July, and August are 12,000, 16,000, and 14,000 units, respectively....
ABC Company’s budgeted sales for June, July, and August are
12,000, 16,000, and 14,000 units, respectively. ABC requires 30% of
the next month’s budgeted unit sales as finished goods inventory
each month. Budgeted ending finished goods inventory for May is
3,600 units. Each unit that ABC Company produces uses 3 pounds of
raw material. ABC requires 25% of the next month’s budgeted
production as raw material inventory each month. Required:
Calculate the number of pounds of raw material to be...
ABC Company’s budgeted sales for June, July, and August are 15,400, 19,400, and 17,400 units, respectively....
ABC Company’s budgeted sales for June, July, and August are
15,400, 19,400, and 17,400 units, respectively. ABC requires 30% of
the next month’s budgeted unit sales as finished goods inventory
each month. Budgeted ending finished goods inventory for May is
4,620 units. Each unit that ABC Company produces uses 3 pounds of
raw material. ABC requires 25% of the next month’s budgeted
production as raw material inventory each month. Required:
Calculate the number of pounds of raw material to be...
Cruises, Inc. has budgeted sales revenues as follows: June July August September Credit sales ($)...
Cruises, Inc. has budgeted sales revenues as follows:
June
July
August
September
Credit sales ($)
135,000
125,000
$ 90,000
120,000
Cash sales ($)
90,000
255,000
195,000
175,000
Total sales ($)
225,000
380,000
285,000
295,000
Purchases ($)
300,000
240,000
205,000
185,000
Past experience indicates that 60% of the credit sales will be
collected in the month of sale and 20% will be collected in the
following month and the remaining 20% after two months. Purchases
of inventory are all...
Detmer Enterprises has the following budgeted sales: Budgeted Sales in Units June 6,800 units July 5,100...
Detmer Enterprises has the following budgeted sales:
Budgeted Sales in Units
June 6,800 units
July 5,100 units
August 4,400 units
September 3,700 units
Past experience has shown that the ending finished goods inventory for
each month should be equal to 25% of the next month's expected sales in
units. Additionally, it is known that every unit produced requires four
direct labor hours to make and direct laborers are paid $15 per hour.
Assume that Detmer pays 65% of its direct...
Detmer Enterprises has the following budgeted sales: Budgeted Sales in Units June 6,800 units July 5,100...
Detmer Enterprises has the following budgeted sales:
Budgeted Sales in Units
June 6,800 units
July 5,100 units
August 4,400 units
September 7,300 units
Past experience has shown that the ending finished goods inventory for
each month should be equal to 20% of the next month's expected sales in
units. Additionally, it is known that every unit produced requires four
direct labor hours to make and direct laborers are paid $15 per hour.
Assume that Detmer pays 65% of its direct...
ZZ, Inc. has budgeted sales in units for the next six months as follows: Budgeted Sales in Units July...
ZZ, Inc. has budgeted sales in units for the next six months as follows:
Budgeted Sales in Units
July 7,700 units
August 8,300 units
September 5,400 units
October 10,200 units
November ?????? units
December 11,700 units
The selling price is $18 per unit. 30% of the company's sales are cash
sales and 70% of the company's sales are made on account. The sales on
account are collected in the pattern 15% in the month of sale, 20% in
the month...
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and...
The
budgeted selling price per unit is $60. Budgeted unit sales for
June, July, August, and September are 8,900, 20,000, 22,000, and
23,000 units, respectively. All sales are on credit.
Forty
percent of credit sales are collected in the month of the sale and
60% in the following month.
The
ending finished goods inventory equals 20% of the following month’s
unit sales.
The
ending raw materials inventory equals 10% of the following month’s
raw materials production needs. Each unit of...
Question 4: Rodie Company has budgeted sales revenues as follows: Particulars June July August Credit Sales...
Question 4: Rodie Company has budgeted sales revenues as
follows:
Particulars
June
July
August
Credit Sales
$135,000
$145,000
$90,000
Cash Sales
$90,000
$255,000
$195,000
Total Sales
$225,000
$400,000
$285,000
Past experience indicates that 60% of the credit sales will be
collected in the month of sale and the remaining 40% will be
collected in the following month. Purchases of inventory are all on
credit and 50% is paid in the month of purchase and 50% in the
month following purchase....
Rodie Company has budgeted sales revenues as follows: Particulars June July August Credit sales $135,000 $145,000...
Rodie Company has budgeted sales revenues as follows:
Particulars June July August Credit sales $135,000 $145,000 $
90,000 Cash sales 90,000 255,000 195,000 Total sales $225,000
$400,000 $285,000 Past experience indicates that 60% of the credit
sales will be collected in the month of sale and the remaining 40%
will be collected in the following month. Purchases of inventory
are all on credit and 50% is paid in the month of purchase and 50%
in the month following purchase. Budgeted...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
- Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
- Mobile and wireless devices are being increasingly used in the Business Administration and Management Industry. write...
- What are the options that might be considered in relation to introducing flexible work practices? What...
- Question 2 : Aggregate Scores: Write a program that opens 2 files, quiz.txt, and hw.txt. The...
- Define the term symbiosis specifically as it applies in a biological context. Compare and contrast parasitism,...
- A research team conducted a study showing that approximately 20% of all businessmen who wear ties...
ADVERTISEMENT