Big Watches Co. makes one product and it provided the following information to help prepare the master budget for its first four months of operations:The budgeted selling price per unit is $81. Budgeted unit sales for September, October, November, and December are 20,000, 21,000, 18,000, and 19,000 units, respectively. All sales are on credit.35% of credit sales are collected in the month of the sale and 65% in the following month.The ending finished goods inventory equals 15% of the following month’s unit sales.The ending raw materials inventory equals 26% of the following month’s raw materials production needs. Each unit of finished goods requires 13 pounds of raw materials. The raw materials cost $11.00 per pound.25% of raw materials purchases are paid for in the month of purchase and 75% in the following month.What is the accounts receivable balance at the start of December?Round your answer to the nearest whole number.

Sales Budget :Sales budget is prepared to show the no. of units to be sold in the future period and…

Answered: Big Watches Co. makes one product and…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

See similar textbooks

Related questions

Concept explainers

Question

Big Watches Co. makes one product and it provided the following information to help prepare the master budget for its first four months of operations:

The budgeted selling price per unit is $81. Budgeted unit sales for September, October, November, and December are 20,000, 21,000, 18,000, and 19,000 units, respectively. All sales are on credit.
35% of credit sales are collected in the month of the sale and 65% in the following month.
The ending finished goods inventory equals 15% of the following month’s unit sales.
The ending raw materials inventory equals 26% of the following month’s raw materials production needs. Each unit of finished goods requires 13 pounds of raw materials. The raw materials cost $11.00 per pound.
25% of raw materials purchases are paid for in the month of purchase and 75% in the following month.

What is the accounts receivable balance at the start of December?

Round your answer to the nearest whole number.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions