Cullumber Sleeper Ltd. manufactures and sells mattresses to retailers across Canada. In 2024, Cullumber Sleeper signed a two-year contract with Crane Ltd. to supply it with 41,800 mattresses at a price of $102 per unit. Cullumber Sleeper's cost to manufacture a mattress is $23. Cullumber Sleeper provides Crane with 30-day credit terms from the date of delivery. The following schedule summarizes the production, delivery, and payments in relation to the contract: Mattresses delivered Manufacturing costs incurred Cash payments received 2024 2025 Total 16,400 25,400 41,800 $377,200 $584,200 $961,400 $1,576,800 $2,535,800 $4,112,600
Cullumber Sleeper Ltd. manufactures and sells mattresses to retailers across Canada. In 2024, Cullumber Sleeper signed a two-year contract with Crane Ltd. to supply it with 41,800 mattresses at a price of $102 per unit. Cullumber Sleeper's cost to manufacture a mattress is $23. Cullumber Sleeper provides Crane with 30-day credit terms from the date of delivery. The following schedule summarizes the production, delivery, and payments in relation to the contract: Mattresses delivered Manufacturing costs incurred Cash payments received 2024 2025 Total 16,400 25,400 41,800 $377,200 $584,200 $961,400 $1,576,800 $2,535,800 $4,112,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:Cullumber Sleeper Ltd. manufactures and sells mattresses to retailers across Canada. In 2024, Cullumber Sleeper signed a two-year
contract with Crane Ltd. to supply it with 41,800 mattresses at a price of $102 per unit. Cullumber Sleeper's cost to manufacture a
mattress is $23. Cullumber Sleeper provides Crane with 30-day credit terms from the date of delivery. The following schedule
summarizes the production, delivery, and payments in relation to the contract:
Mattresses delivered
Manufacturing costs incurred
Cash payments received
(a1)
Your answer is correct.
2024
Revenue recognized on 2025
25,400
41,800
$584,200
$961,400
$1,576,800 $2,535,800 $4.112,600
$377,200
Revenue recognized on 2024 $
16.400
$
2025
Determine how much revenue Cullumber Sleeper would be able to recognize in 2024 and 2025.
Total
1,672,800
2,590,800
Transcribed Image Text:Prepare the required summary journal entries for the contract based on your analysis in part (a). (Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter o for the amounts. List all debit entries before credit entries.)
Date Account Titles and Explanation
2024
2025
(To record sales revenue)
(To record cost of goods sold)
(To record collections)
(To record sales revenue)
(To record cost of goods sold)
(To record collections)
Debit
Credit
|||||||
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