## Question 29**Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas at $12 per pizza per month. It expects to collect 95% of the sales in the month of the sale and 5% in the following month. Calculate the amount of budgeted sales revenue for its first quarter.**### Steps to Calculate Budgeted Sales Revenue:1. **Calculate Monthly Sales**: - Number of pizzas per month: 8,000 - Price per pizza: $12 Monthly Sales Revenue = 8,000 pizzas * $12/pizza = $96,0002. **Calculate Quarterly Sales**: - There are 3 months in a quarter: Quarterly Sales Revenue = $96,000/month * 3 months = $288,0003. **Calculate Collections**: - 95% of sales are collected in the sale month. - 5% of sales are collected in the following month. For each month: - **Month 1**: - Collected in Month 1: 95% of $96,000 = $91,200 - Collected in Month 2: 5% of $96,000 = $4,800 - **Month 2**: - Collected in Month 2 (from Month 2 sales): 95% of $96,000 = $91,200 - Collected in Month 3: 5% of $96,000 = $4,800 - **Month 3**: - Collected in Month 3 (from Month 3 sales): 95% of $96,000 = $91,200 - Collected in Month 4: 5% of $96,000 = $4,8004. **Total Collections for the Quarter**: - Month 1: $91,200 - Month 2: $91,200 (current month) + $4,800 (previous month) = $96,000 - Month 3: $91,200 (current month) + $4,800 (previous month) = $96,000 Total Collections = $91,200 + $96,000 + $96,000 = $283,200Thus,

Name: ## Question 29**Pasta Disasta, Inc. is preparing its master budget fo
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: ## Question 29**Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas at $12 per pizza per month. It expects to collect 95% of the sales in the month of the sale and 5% in the following

Budgets are the estimates or forecasts that are made for future period of time. Budgeted sales means…

Business

Accounting

QUESTION 29 Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas at $12 per pizza per month. It expects to collect 95% of the sales in the month of the sale and 5% in the following month. Calculate the amount of budgeted sales revenue for its first quarter.

QUESTION 29 Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas at $12 per pizza per month. It expects to collect 95% of the sales in the month of the sale and 5% in the following month. Calculate the amount of budgeted sales revenue for its first quarter.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Help me answer problem 10 TY
can u help
Question 1 Jupiter Inc. is a wholesale distributor of Apple laptop bags. Thus, peak sales occur in May of each year as shown in the company's sales budget for the second quarter, given below: April May Budgeted Sales (All on account) $ 87,000 $86,000 June $92,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. February sales totaled $85,000, and March sales totaled $88,000. Required: Prepare a schedule of expected cash collections from sales for each month (April, May, and June) and the quarter total.
10 Skullduggery, Inc. reports the following information from its sales budget: Budgeted sales (units) 100,000 105,000 103,000 107,000 September October November December The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 60% in the month following sale, and the remaining 30% in the second month following sale. The total amount of cash expected to be received from customers in December is: $520,000 $535,000 $522,000 $516,500
Help
Ashvinn
Question 8.1 Sun Company manufacturers beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 30,000 August 70,000 September 50,000 October 20,000 November 10,000 December 10,000 The selling price of the umbrellas is $12 each. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: 30% In the month of sale 65% In the month following sale 5% uncollectable Sales for June were $300,000 The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. Each beach umbrella…
Question 10 Cash Budget Daybook Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $105,000 for September and $116,000 for October, what are the budgeted cash receipts from sales on account for October?
Please help me with show all calculation thanku
12 2 Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: Required 1 Required 2 Budgeted sales (all on account) From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $330,000, and March sales totaled $360,000. Complete this question by entering your answers in the tabs below. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? February sales March sales April sales May sales June sales Total cash collections f3 Prepare a schedule of expected cash collections from sales, by…
can u help me
esc QUESTION 36 Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas per month. It will purchase enough pizzas so that 100 pizzas are in inventory at all times by purchasing 8,100 pizzas in the first month and 8,000 pizzas in the second and third months. The pizza is expected to cost $5 per pizza. It expects to pay 70% in the month of purchase and the remainder in the following month. Calculate the amount of cash paid for inventory for its first quarter. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Q A I N 2 W S #3 X E H $ 4 D. R C 07 dº % 5 F MacBook Pro D T ^ 6 V G of Y 7 H B * 00 8 U J N 9 Save к O O M