Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 53,000 63,000 May 43,000 53,000 June 63,000 53,000 Cash-related production costs are budgeted at $5 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 $50,000 per month. The accounts payable balance on March 31 totals $182,000, which will be paid in April. All units are sold on account for $11 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $674,000 ($114,000 from February's sales and $560,000 from March's sales). Required A Required B 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. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 53,000 63,000 May 43,000 53,000 June 63,000 53,000 Cash-related production costs are budgeted at $5 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 $50,000 per month. The accounts payable balance on March 31 totals $182,000, which will be paid in April. All units are sold on account for $11 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $674,000 ($114,000 from February's sales and $560,000 from March's sales). Required A Required B 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. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
Related questions
Concept explainers
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.
Question
Transcribed Image Text:Help Save & Exit Submit
Tilson Corporation has projected sales and production in units for the second quarter of the coming year as
follows:
Sales
Production
April
53,000
63,000
Cash-related production costs are budgeted at $5 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 $50,000 per month. The accounts payable balance on March 31 totals $182,000,
which will be paid in April.
2
All units are sold on account for $11 each. Cash collections from sales are budgeted at 60% in the month of
sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the
month of sale. Accounts receivable on April 1 totaled $674,000 ($114,000 from February's sales and $560,000
from March's sales).
Required A Required B
Production cost
Cash disbursement:
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.
Total disbursements
Production costs this month (40%)
Production costs prior month (60.0%)
Selling and administrative
May
43,000
53,000
Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
#
3
F3
Saved
< Prev
****▪▪▪DO
DO
4
June
63,000
53,000
DOD
DOD
F4
April
25 of 29
%
5
F5
May
June
6
Next >
***********
MacBook Pro
&
7
AA
F7
*
8
DII
F8
(
9
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning