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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

FINANCIAL ACCOUNTING
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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**Tilson Corporation Projected Sales and Production** *Overview:* Tilson Corporation has projected sales and production in units for the second quarter as follows: - **April:** - Sales: 54,000 - Production: 54,000 - **May:** - Sales: 44,000 - Production: 54,000 - **June:** - Sales: 64,000 - Production: 54,000 *Cost Details:* - Production costs are budgeted at $4 per unit. - 50% of these costs are paid in the month incurred, with the remainder paid the following month. - Selling and administrative expenses are $40,000 monthly. - Accounts payable as of March 31 totals $183,000 (to be paid in April). *Sales Details:* - All units are sold on account for $10 each. - Cash collections from sales: - 50% in the sale month - 30% in the following month - 20% in the second following month - Accounts receivable on April 1 totals $663,000. *Requirements:* 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. *Schedule Layout:* **April, May, June** - **Production cost:** - Calculate and record 50% of production costs for disbursement in the current month and 50% from the previous month. - **Selling and administrative costs:** - Flat $40,000 each month. - **Total Disbursements:** - Sum of production and selling/administrative costs. Utilize this information to plan and manage cash flows effectively.
Transcribed Image Text:**Tilson Corporation Projected Sales and Production** *Overview:* Tilson Corporation has projected sales and production in units for the second quarter as follows: - **April:** - Sales: 54,000 - Production: 54,000 - **May:** - Sales: 44,000 - Production: 54,000 - **June:** - Sales: 64,000 - Production: 54,000 *Cost Details:* - Production costs are budgeted at $4 per unit. - 50% of these costs are paid in the month incurred, with the remainder paid the following month. - Selling and administrative expenses are $40,000 monthly. - Accounts payable as of March 31 totals $183,000 (to be paid in April). *Sales Details:* - All units are sold on account for $10 each. - Cash collections from sales: - 50% in the sale month - 30% in the following month - 20% in the second following month - Accounts receivable on April 1 totals $663,000. *Requirements:* 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. *Schedule Layout:* **April, May, June** - **Production cost:** - Calculate and record 50% of production costs for disbursement in the current month and 50% from the previous month. - **Selling and administrative costs:** - Flat $40,000 each month. - **Total Disbursements:** - Sum of production and selling/administrative costs. Utilize this information to plan and manage cash flows effectively.
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