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Edwards Company has projected sales and production in units for the second quarter of the...

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Accounting

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Edwards Company has projected sales and production in units for the second quarter of the year as follows: Apri May June es.30,000 20,000 25,000 25,000 25,000 30,000 Production. 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 S60,000 per month. The accounts payable balance on March 31 totals S96,000, 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 S(45,000 from February's sales and the remainder from March.) Prepare a schedule for each month showing budgeted cash receipts for Edwards Company. TTT Paragraph # Arial # 3 (12pt) #T-,, + Mashups

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