For the second quarter of the following year Cloaks Company has projected sales and production in units as follows:
Jan |
Feb |
Mar |
|
Sales |
50,000 |
52,000 |
57,000 |
Production |
54,000 |
49,000 |
50,000 |
Cash-related production costs are budgeted at $14 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the next month. $127,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals $227,000, which will be paid in February.
All units are sold on account for $19 each. Cash collections from sales are budgeted at 60% in the month of sale, 20% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. On January 1 accounts receivable totaled $665,000 ($155,000 from November’s sales and the remaining from December).
Required:
(5 marks)
Answer
For the second quarter of the following year Cloaks Company has projected sales and production in...
For the second quarter of the following year Cloaks Company has projected sales and production in units as follows:JanFebMarSales50,00052,00057,000Production54,00049,00050,000Cash-related production costs are budgeted at $14 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the next month. $127,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals $227,000, which will be paid in February.All units are sold on account...
For the second quarter of the following year Cloaks Company has projected sales and production in units as follows: Jan Feb Mar Sales 50,000 52,000 57,000 Production 54,000 49,000 50,000 Cash-related production costs are budgeted at $12 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the next month. $125,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals...
For the second quarter of the following year Cloaks Company has projected sales and production in units as follows: Jan Feb Mar Sales 50,000 $2,000 57,000 Production 54,000 49,000 50,000 Cash-related production costs are budgeted at $12 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the next month. $125,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals...
For the second quarter of the following year Cloaks Company has projected sales and production in units as follows: Jan Feb Mar Sales 50,000 52,000 57,000 Production 54,000 49,000 50,000 For the second quarter of the following year Cloaks Company has projected sales and production in units as follows: Jan Feb Mar Sales 50,000 52,000 57,000 Production 54,000 49,000 50,000 Cash-related production costs are budgeted at $11 per unit produced. Of these production costs, 40% are paid in the month...
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sales of january -50,000
feb- 52000
march - 57000
production of jan- 54000
feb- 49000
march- 50000
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