This Website Has Been Moved to a New Link


Loading

E9-17 LRF Company’s budgeted sales

Price: $1.99


E9-17 LRF Company’s budgeted sales and direct materials purchases are as follows.
Budgeted Sales Budgeted D.M. Purchases


Budgeted Sales  Budgeted D.M. Purchases 
January   200,000  30,000
February   220,000  36,000
March   270,000  40,000

LRF’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of
sale, 50% in the month following sale, and 36% in the second month following sale; 4% are
uncollectible. LRF’s purchases are 50% cash and 50% on account. Purchases on account
are paid 40% in the month of purchase, and 60% in the month following purchase.

Instructions
(a) Prepare a schedule of expected collections from customers for March.
(b) Prepare a schedule of expected payments for direct materials for March.

No comments:

Post a Comment