2. Jo-Jo’s Yo-yos has the following budgeted sales and direct materials purchases: Month Budgeted Sales Budgeted direct...

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Accounting

2. Jo-Jo’s Yo-yos has the following budgeted sales and directmaterials purchases:
Month Budgeted Sales Budgeted direct materials purchases
January $190,000 $30,000
February $210,000 $35,000
March $300,000 $45,000
Jo-Jo’s Yo-yos’ sales are 40% cash and 60% on credit. Itcollects credit sales 10% in the month of the sale, 50% in themonth following the sale, and 36% in the second month following thesale. 4% of the sales are uncollectible.
Jo-Jo’s Yo-yos’ purchases are 50% cash and 50% on account. Itpays on account 60% in the month of the purchase and 40% in themonth following the purchase.
a. Prepare a schedule of expected cash collections forMarch.
March cash sales,
March credit sales collections,
January credit sales collections,
February credit sales collections,
Total cash collections.
a. Prepare a schedule of expected cash payments for directmaterials for March.
March cash purchases,
March credit purchases paid,
February credit purchases paid,
Total cash collections.

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Schedule of expected cash collections for march January February March Cash sales of January 76000 Cash sales of February 84000 Cash Sales of March 120000 credit sales of January 11400 57000 41040 credit sales of February 12600 63000 credit Sales of See Answer

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2. Jo-Jo’s Yo-yos has the following budgeted sales and directmaterials purchases:Month Budgeted Sales Budgeted direct materials purchasesJanuary $190,000 $30,000February $210,000 $35,000March $300,000 $45,000Jo-Jo’s Yo-yos’ sales are 40% cash and 60% on credit. Itcollects credit sales 10% in the month of the sale, 50% in themonth following the sale, and 36% in the second month following thesale. 4% of the sales are uncollectible.Jo-Jo’s Yo-yos’ purchases are 50% cash and 50% on account. Itpays on account 60% in the month of the purchase and 40% in themonth following the purchase.a. Prepare a schedule of expected cash collections forMarch.March cash sales,March credit sales collections,January credit sales collections,February credit sales collections,Total cash collections.a. Prepare a schedule of expected cash payments for directmaterials for March.March cash purchases,March credit purchases paid,February credit purchases paid,Total cash collections.