3- Hammerly Corporation is preparing its master budget for the quarter ending March 31 It sells a single product for $35 a unit. Budgeted sales are 60% cash and 40% on credit. All credit sales are collected in the month following the sales. Budgeted unit sales for the next four months follow: March April 1,600 1,400 Sales in units January 1,200 February 1,000 At December 31, the balance in accounts receivable is $10,000, which represents the uncollected portion of December sales. The company desires merchandise inventory equal to 20% of the next month's sales in units... The December 31 balance of merchandise inventory is 340 units, and inventory cost is $10 per unit.

3- Hammerly Corporation is preparing its master budget for the quarter ending March 31 It sells a single product for $35 a unit. Budgeted sales are 60% cash and 40% on credit. All credit sales are collected in the month following the sales. Budgeted unit sales for the next four months follow: March April 1,600 1,400 Sales in units January 1,200 February 1,000 At December 31, the balance in accounts receivable is $10,000, which represents the uncollected portion of December sales. The company desires merchandise inventory equal to 20% of the next month's sales in units... The December 31 balance of merchandise inventory is 340 units, and inventory cost is $10 per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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