Problem 4Assume the foilowing are the projected sales of ABC company:MONTH AND YEARPROJECTED SALES$ 120,000April 20X1May 20X1100,000June 20X180,00050,000July 20X1August 20X1September 20X160,00090,000150,000October 20X1Additional information:80 percent of sales are on credit basis. 30 percent of the accounts receivables areare collected during the second month of sale.collected in one month and the remainingMaterial cost accounts for 25 percent of sales,V Salary expense accounts for 15 percent of sales, andV Production overheads accounts for 15 percent of sales.Required: based on the above information determine:on August?Company on June?

Projected sales are an estimate of revenue which is expected to be earned by the company in the near…

Problem 4 Assume the foilowing are the projected sales of ABC company: MONTH AND YEAR PROJECTED SALES $ 120,000 April 20X1 May 20X1 i 00,000 June 20X1 80,000 July 20X1 August 20X1 September 20X1 50,000 60,000 90,000 150,000 October 20X1 Additional information: V 80 percent of sales are on credit basis. 30 percent of the accounts receivables are collected in one month and the remaining are collected during the second month of sale V Material cost accounts for 25 percent of sales, / Salary expense accounts for 15 percent of saies, and V Production overheads accounts for 15 percent of sales. Required: based on the above information determine: a) The cash sale, collections and total receipts on August? b) The material cost, salary expense, production overhead and total payments of ABC Çompany on June?

Problem 4 Assume the foilowing are the projected sales of ABC company: MONTH AND YEAR PROJECTED SALES $ 120,000 April 20X1 May 20X1 i 00,000 June 20X1 80,000 July 20X1 August 20X1 September 20X1 50,000 60,000 90,000 150,000 October 20X1 Additional information: V 80 percent of sales are on credit basis. 30 percent of the accounts receivables are collected in one month and the remaining are collected during the second month of sale V Material cost accounts for 25 percent of sales, / Salary expense accounts for 15 percent of saies, and V Production overheads accounts for 15 percent of sales. Required: based on the above information determine: a) The cash sale, collections and total receipts on August? b) The material cost, salary expense, production overhead and total payments of ABC Çompany on June?

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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