Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tilson corporation has projected sales and product

Tilson Corporation has projected sales and production in units for the second quarter of the...

60.1K

Verified Solution

Question

Accounting

Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows:

April May June
Sales 57,000 47,000 67,000
Production 67,000 57,000 57,000

Cash-related production costs are budgeted at $5 per unit produced. Of these production costs, 30% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $50,000 per month. The accounts payable balance on March 31 totals $195,000, which will be paid in April.

All units are sold on account for $11 each. Cash collections from sales are budgeted at 45% in the month of sale, 25% in the month following the month of sale, and the remaining 30% in the second month following the month of sale. Accounts receivable on April 1 totaled $542,000 ($102,000 from February's sales and $440,000 from Marchs sales).

Required:

a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.

b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students