Current Attempt in Progress Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $200,000 $30,000 February 220,000 36.000 March 250,000 38,000 Nieto'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. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 405 in the month of purchase and 60% in the month following purchase (a) Prepare a schedule of expected collections from customers for March NIETO COMPANY Expected Collections from Customers March Total collections (b) Prepare a schedule of expected payments for direct materials for March NIETO COMPANY Expected Payments for Direct Materials March

Current Attempt in Progress Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $200,000 $30,000 February 220,000 36.000 March 250,000 38,000 Nieto'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. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 405 in the month of purchase and 60% in the month following purchase (a) Prepare a schedule of expected collections from customers for March NIETO COMPANY Expected Collections from Customers March Total collections (b) Prepare a schedule of expected payments for direct materials for March NIETO COMPANY Expected Payments for Direct Materials March

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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Down Under Products' sales budget for the next four months is as follows: Unit Sales April May June July 78,000 85,000 118,000 94,000 The company wants its ending inventory levels to equal 20% of the following month's unit sales. The inventory at the end of March was 15,600 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April May June Quarter 0 0 0 0 0 0 0 0
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