Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April 58,000 68,000 Sales Production Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $60,000 per month. The accounts payable balance on March 31 totals $196,000, which will be paid in April. All units are sold on account for $12 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 $553,000 ($103,000 from February's sales and $450,000 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. May 48,000 58,000 Production cost Cash disbursement: June 68,000 58,000 Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. April Production costs this month (35%) Production costs prior month (65.0%) Selling and administrative Tatal dinhurementa May June
Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April 58,000 68,000 Sales Production Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $60,000 per month. The accounts payable balance on March 31 totals $196,000, which will be paid in April. All units are sold on account for $12 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 $553,000 ($103,000 from February's sales and $450,000 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. May 48,000 58,000 Production cost Cash disbursement: June 68,000 58,000 Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. April Production costs this month (35%) Production costs prior month (65.0%) Selling and administrative Tatal dinhurementa May 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.
Question
6
Transcribed Image Text:Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows:
April
58,000
68,000
Sales
Production
Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 35% are paid in the month in which
they are incurred and the balance in the following month. Selling and administrative expenses will amount to $60,000 per month. The
accounts payable balance on March 31 totals $196,000, which will be paid in April.
All units are sold on account for $12 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 $553,000 ($103,000 from February's sales and $450,000 from March's sales).
Required A Required B
May
48,000
58,000
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.
June
68,000
58,000
Production cost
Cash disbursement:
Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
April
Production costs this month (35%)
Production costs prior month (65.0%)
Selling and administrative
Tatal dinhurements
May
June
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