Tildy Corporation projected sales and production in units for the coming year as follows: June Sales Production April 55,000 65,000 May 45,000 55,000 60,000 54,000 Cash-related production costs are budgeted at $15 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month, which includes 29,000 of depreciation expense, and are paid in the month incurred. The accounts payable balance on March 31 totals $193,000, which will be paid in April. All units are sold on account for $32 each. Cash collections from sales are budgeted at 60% in the month of sale, 40% in the month following the month of sale. Accounts receivable on March 31 was $192,000. What is the budgeted Accounts Payable at the end of June?
Tildy Corporation projected sales and production in units for the coming year as follows: June Sales Production April 55,000 65,000 May 45,000 55,000 60,000 54,000 Cash-related production costs are budgeted at $15 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month, which includes 29,000 of depreciation expense, and are paid in the month incurred. The accounts payable balance on March 31 totals $193,000, which will be paid in April. All units are sold on account for $32 each. Cash collections from sales are budgeted at 60% in the month of sale, 40% in the month following the month of sale. Accounts receivable on March 31 was $192,000. What is the budgeted Accounts Payable at the end of 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:Tildy Corporation projected sales and production in units for the coming year as follows:
May
June
45,000
60,000
Sales
Production
April
55,000
65,000
55,000
54,000
Cash-related production costs are budgeted at $15 per unit produced. Of these production costs, 40%
are paid in the month in which they are incurred and the balance in the following month. Selling and
administrative expenses will amount to $110,000 per month, which includes 29,000 of depreciation
expense, and are paid in the month incurred. The accounts payable balance on March 31 totals
$193,000, which will be paid in April.
All units are sold on account for $32 each. Cash collections from sales are budgeted at 60% in the
month of sale, 40% in the month following the month of sale. Accounts receivable on March 31 was
$192,000.
What is the budgeted Accounts Payable at the end of June?
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