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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?

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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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?
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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