Homework Help is Here – Start Your Trial Now!
Business
Accounting
C10.58 Solid State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the following information: Balances at January 1 are expected to be as follows: Cash Accounts receivable The budget is to be based on the following assumptions: 1. Each month's sales are billed on the last day of the month. $ 5,500 Inventories 416,100 Accounts payable 2. Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at gross. 3. The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and 9% by the end of the second month after the date of sale; 6% prove uncollectible. 4. It pays 54% of all materials purchases and the selling, general, and administrative expenses in the month purchased and the remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of sales. 5. The cost of each unit of inventory is $20. 6. Selling, general, and administrative expenses, of which $2,000 is for depreciation, are equal to 15% of the current month's sales. 7. Actual and projected sales are as follows: Month November (actual) December (actual) January (projected) February (projected) March (projected) April (projected) $309,400 133,055 Instructions c. Calculate the budgeted number of units of inventory to be purchased during the month of March. Sales $354,000 363,000 357,000 342,000 360,000 366,000 Units 11,800 12,100 11,900 11,400 12,000 12,200

C10.58 Solid State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the following information: Balances at January 1 are expected to be as follows: Cash Accounts receivable The budget is to be based on the following assumptions: 1. Each month's sales are billed on the last day of the month. $ 5,500 Inventories 416,100 Accounts payable 2. Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at gross. 3. The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and 9% by the end of the second month after the date of sale; 6% prove uncollectible. 4. It pays 54% of all materials purchases and the selling, general, and administrative expenses in the month purchased and the remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of sales. 5. The cost of each unit of inventory is $20. 6. Selling, general, and administrative expenses, of which $2,000 is for depreciation, are equal to 15% of the current month's sales. 7. Actual and projected sales are as follows: Month November (actual) December (actual) January (projected) February (projected) March (projected) April (projected) $309,400 133,055 Instructions c. Calculate the budgeted number of units of inventory to be purchased during the month of March. Sales $354,000 363,000 357,000 342,000 360,000 366,000 Units 11,800 12,100 11,900 11,400 12,000 12,200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
17C10.58 Solid State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the following information: Balances at January 1 are expected to be as follows: Cash Accounts receivable The budget is to be based on the following assumptions: 1. Each month's sales are billed on the last day of the month. $ 5,500 416,100 Instructions 2. Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at gross. 3. The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and 9% by the end of the second month after the date of sale; 6% prove uncollectible. Inventories Accounts payable 4. It pays 54% of all materials purchases and the selling, general, and administrative expenses in the month purchased and the remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of sales. 5. The cost of each unit of inventory is $20. 6. Selling, general, and administrative expenses, of which $2,000 is for depreciation, are equal to 15% of the current month's sales. 7. Actual and projected sales are as follows: Month November (actual) December (actual) January (projected) February (projected) March (projected) April (projected) c. Calculate the budgeted number of units of inventory to be purchased during the month of March. $309,400 133,055 Sales $354,000 363,000 357,000 342,000 360,000 366,000 Units 11,800 12,100 11,900 11,400 12,000 12,200
Transcribed Image Text:17C10.58 Solid State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the following information: Balances at January 1 are expected to be as follows: Cash Accounts receivable The budget is to be based on the following assumptions: 1. Each month's sales are billed on the last day of the month. $ 5,500 416,100 Instructions 2. Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at gross. 3. The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and 9% by the end of the second month after the date of sale; 6% prove uncollectible. Inventories Accounts payable 4. It pays 54% of all materials purchases and the selling, general, and administrative expenses in the month purchased and the remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of sales. 5. The cost of each unit of inventory is $20. 6. Selling, general, and administrative expenses, of which $2,000 is for depreciation, are equal to 15% of the current month's sales. 7. Actual and projected sales are as follows: Month November (actual) December (actual) January (projected) February (projected) March (projected) April (projected) c. Calculate the budgeted number of units of inventory to be purchased during the month of March. $309,400 133,055 Sales $354,000 363,000 357,000 342,000 360,000 366,000 Units 11,800 12,100 11,900 11,400 12,000 12,200
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS