Edwards Company has projected sales and production in units for the second quarter of the year as follows: Required:
a.Cash production costs are budgeted at $6 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 (all paid in cash)amount to $60,000 per month.The accounts payable balance on March 31 totals $96,000,all of which will be paid in April.Prepare a schedule for each month showing budgeted cash disbursements for Edwards Company.
b.Assume that all units will be sold on account for $15 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 March 31 totaled $255,000 $(45,000 from February's sales and the remainder from March. )Prepare a schedule for each month showing budgeted cash receipts for Edwards Company.

Question

Edwards Company has projected sales and production in units for the second quarter of the year as follows:  Required:
a.Cash production costs are budgeted at $6 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 (all paid in cash)amount to $60,000 per month.The accounts payable balance on March 31 totals $96,000,all of which will be paid in April.Prepare a schedule for each month showing budgeted cash disbursements for Edwards Company.
b.Assume that all units will be sold on account for $15 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 March 31 totaled $255,000 $(45,000 from February's sales and the remainder from March. )Prepare a schedule for each month showing budgeted cash receipts for Edwards Company.

Quizplus · Accepted Answer

The Answer of Edwards Company has projected sales and production in units for the second quarter of the year as follows:  Required:
a.Cash production costs are budgeted at $6 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 (all paid in cash)amount to $60,000 per month.The accounts payable balance on March 31 totals $96,000,all of which will be paid in April.Prepare a schedule for each month showing budgeted cash disbursements for Edwards Company.
b.Assume that all units will be sold on account for $15 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 March 31 totaled $255,000 $(45,000 from February's sales and the remainder from March. )Prepare a schedule for each month showing budgeted cash receipts for Edwards Company.

Edwards Company Has Projected Sales and Production in Units for the Second