ACCTG322 Lecture Notes - Net Income, Share Capital, Income Statement

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violetchinchilla775

8 Apr 2014

School

University of Alberta

Department

Accounting

Course

ACCTG322

Professor

Trish Stringer

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Document Summary

In class #9. 1 prepare the sales budget. Prepare the sales budget for the quarter ending june 30th. Prepare the cash collections budget for the quarter ended june 30th. In class #9. 2 prepare the production budget. Prepare a direct materials purchases budget for the quarter ended june 30th. Prepare the cash disbursements budget for the quarter ended june 30th. In class #9. 4 - prepare a direct labour budget. Prepare the direct labour budget for the quarter ended june 30th. In class #9. 5 - prepare a manufacturing overhead budget. Prepare the manufacturing overhead budget for the quarter ended june 30th. In class #9. 6 - prepare a selling & administrative budget for the year. Prepare the selling and administrative budget for the quarter ended june 30th. In class #9. 7 - prepare a finished goods budget for the year. Prepare the product cost per unit (using moh applied) using absorption costing for the quarter ended.

Related Questions

Silver Company makes a product that is very popular as aMotherâs Day gift. Thus, peak sales occur in May of each year, asshown in the companyâs sales budget for the second quarter givenbelow:

	April	May	June	Total
Budgeted sales (allon account)	$400,000	$600,000	$190,000	$1,190,000

From past experience, the company has learned that 30% of amonthâs sales are collected in the month of sale, another 60% arecollected in the month following sale, and the remaining 10% arecollected in the second month following sale. Bad debts arenegligible and can be ignored. February sales totaled $330,000, andMarch sales totaled $360,000.

Required:

1. Prepare a schedule of expected cash collections from sales,by month and in total, for the second quarter.

Schedule of Expected Cash Collections
	April	May	June	Total
February sales
March sales
April sales
May sales
June sales
Total cash collections

2. Assume that the company will prepare a budgeted balance sheetas of June 30. Compute the accounts receivable as of that date.


May sales
June sales
Total accounts receivable atJune 30

brownbear692

Silver Company makes a product that is very popular as aMotherâs Day gift. Thus, peak sales occur in May of each year, asshown in the companyâs sales budget for the second quarter givenbelow:

	April	May	June	Total
Budgeted sales (allon account)	$420,000	$620,000	$240,000	$1,280,000

From past experience, the company has learned that 20% of amonthâs sales are collected in the month of sale, another 65% arecollected in the month following sale, and the remaining 15% arecollected in the second month following sale. Bad debts arenegligible and can be ignored. February sales totaled $350,000, andMarch sales totaled $380,000.

Required:
1.	Prepare a schedule of expected cash collections from sales, bymonth and in total, for the second quarter.

Schedule of Expected Cash Collections

April . May . June . July . Total

Febuary Sales

March Sales

April Sales

May Sales

June Sales

Total Cash Collections

2) Assume that the company will prepare a budgeted balance sheetas of June 30. Compute the accounts receivable as of that date.

May Sales . _________

June Sales . ___________

Total accounts recievable at June 30 ___________

crimsonalligator367

Cash Receipts
The sales budget for Perrier Inc. is forecasted as follows:

Month	Sales Revenue
May	$140,000
June	140,000
July	180,000
August	120,000

To prepare a cash budget, the company must determine thebudgeted cash collections from sales. Historically, the followingtrend has been established regarding cash collection of sales:

60 percent in the month of sale.

20 percent in the month following sale.

15 percent in the second month following sale.

5 percent uncollectible.

The company gives a 1 percent cash discount for payments made bycustomers during the month of sale. The accounts receivable balanceon April 30 is $25,000, of which $6,000 represents uncollectedMarch sales and $19,000 represents uncollected April sales. Preparea schedule of budgeted cash collections from sales for May, June,and July. Include a three-month summary of estimated cashcollections.

Perrier, Inc. Schedule of Budgeted Cash Collections Quarterly by Months
	May	June	July	Total
Total Cash receipts:	$Answer	$Answer	$Answer	$Answer

lemonhippopotamus876

ACCTG322 Lecture Notes - Net Income, Share Capital, Income Statement

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