Bramble Company's budgeted sales and direct materials purchases are as follows. Budgeted Budgeted D.M. Purchases Sales January $244,000 February 268,400 March 305.000 (a) Bramble's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Bramble's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase Prepare a schedule of expected collections from customers for March. Total collections (b) $36.600 43,920 46.360 BRAMBLE COMPANY Schedule of Expected Collections from Customers March V Total payments $ $ Prepare a schedule of expected payments for direct materials for March BRAMBLE COMPANY Schedule of Expected Payments for Direct Materials March $
Bramble Company's budgeted sales and direct materials purchases are as follows. Budgeted Budgeted D.M. Purchases Sales January $244,000 February 268,400 March 305.000 (a) Bramble's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Bramble's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase Prepare a schedule of expected collections from customers for March. Total collections (b) $36.600 43,920 46.360 BRAMBLE COMPANY Schedule of Expected Collections from Customers March V Total payments $ $ Prepare a schedule of expected payments for direct materials for March BRAMBLE COMPANY Schedule of Expected Payments for Direct Materials March $
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Bramble Company's budgeted sales and direct materials purchases are as follows.
January
February 268,400
March
Budgeted
Sales
$244.000
(a)
305,000
Bramble's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Bramble's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following
purchase.
(b)
Budgeted D.M. Purchases
Prepare a schedule of expected collections from customers for March.
Total collections
$36,600
43.920
46,360
BRAMBLE COMPANY
Schedule of Expected Collections from Customers
Total payments
$
March
Prepare a schedule of expected payments for direct materials for March.
BRAMBLE COMPANY
Schedule of Expected Payments for Direct Materials
March
Transcribed Image Text:Payment of March credit purchases
February cash sales
January cash sales
Collection of January credit sales
March cash sales
Payment of February credit purchases
Collection of February credit sales
Collection of March credit sales
March cash purchases
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