TB Problem Qu. 8-217 (Algo) Tilson Corporation has projected sales and... Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April June 64,000 54,000 64,000 54,000 Sales Production Cash-related production costs are budgeted at $4 per unit produced. Of these production costs, 50% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $40,000 per month. The accounts payable balance on March 31 totals $183,000, which will be paid in April. All units are sold on account for $10 each. Cash collections from sales are budgeted at 50% in the month of sale, 30% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. Accounts receivable on April 1 totaled $663,000 ($113,000 from February's sales and $550,000 from March's sales). May 44,000 54,000 Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. May Production cost Cash disbursement April June
TB Problem Qu. 8-217 (Algo) Tilson Corporation has projected sales and... Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April June 64,000 54,000 64,000 54,000 Sales Production Cash-related production costs are budgeted at $4 per unit produced. Of these production costs, 50% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $40,000 per month. The accounts payable balance on March 31 totals $183,000, which will be paid in April. All units are sold on account for $10 each. Cash collections from sales are budgeted at 50% in the month of sale, 30% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. Accounts receivable on April 1 totaled $663,000 ($113,000 from February's sales and $550,000 from March's sales). May 44,000 54,000 Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. May Production cost Cash disbursement April June
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:TB Problem Qu. 8-217 (Algo) Tilson Corporation has projected sales and...
Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows:
April
June
54,000
64,000
64,000
54,000
Sales
Production
Cash-related production costs are budgeted at $4 per unit produced. Of these production costs, 50% are paid in the month in which
they are incurred and the balance in the following month. Selling and administrative expenses will amount to $40,000 per month. The
accounts payable balance on March 31 totals $183,000, which will be paid in April.
All units are sold on account for $10 each. Cash collections from sales are budgeted at 50% in the month of sale, 30% in the month
following the month of sale, and the remaining 20% in the second month following the month of sale. Accounts receivable on April 1
totaled $663,000 ($113,000 from February's sales and $550,000 from March's sales).
Required:
a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
May
Production cost
Cash disbursement:
May
44,000
54,000
Production costs this month (50%)
Production costs prior month (50.0%)
Selling and administrative
Total disbursements
April
Required A
June
Required B >
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