Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc inc. has projected sales and production in uni

ABC Inc. has projected sales and production in units for the second quarter of the...

80.2K

Verified Solution

Question

Accounting

ABC Inc. has projected sales and production in units for the second quarter of the coming year as follows:

April May June
sales....... 50,000 40,000 60,000
production..... 60,000 50,000

50,000

cash related production costs are budgeted at $5 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $100,000 per month. The accounts payable balance on March 31 totals $190,000, which will be paid in April.

All units are sold on account for $14 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% 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 $500,000 ($90,000 from Feb. sales and $41,000 from March's sales).

1. prepare a schedule for each month showing budgeted cash disbursements

2. prepare a schedule for each month showing budgeted cash receipts

provide answers in detail.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The government through a subsidy program distributes 27 000 000 If each person or agency...

Basic Math
Q

Full Boat Manufacturing has projected sales of $124 million next year. Costs are expected to be...

Finance
Q

What differences are there between a free living, single celled organism such as a paramecium and...

Medical Sciences
Q

Suppose you used a paper chromatography method to separate all the amino acids, but aspartate (aspartic...

Biology
Q

Consider the following data drawn independently from normally distributed populations: (You may find it useful to reference...

Basic Math
Q

Analysis Integral confused concept. Please clear writing and follow the comment 1. upper sum with respect to...

Advance Math
Q

In Virginia water has eroded underground areas of limestone to form large 2 points caves...

Biology
Q

13 Given LAE LC CF AD Pww AE CE D B F

Geometry
Q

Find the slope of a line parallel to the following line.f(x) = -4x/3-8Select the correct...

Algebra
Q

Diego is married to Consuela, who lives with him. Both are U.S. citizens and residents...

Accounting
Q

Fanning Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw...

Accounting
Q

EXCEL FORM (show calculation steps) PLEASE A company is considering the purchase of a...

Finance