For the first quarter of 2021, ABC Firm prepared the following sales budget and purchases budget. Sales Budget April May June Total Unit Sales 4,600 3,500 7,300 15,400 SP 8 8 8 8 Sales 36,800 $ 28,000 $ 58,400 $ 123,200 Purchases Budget April May June Total Unit Sales 4,600 3,500 7,300 15,400 El 700 1,460 660 660 Unit Required 5,300 4,960 7,960 16,060 BI 890 700 1,460 890 Units 2 B Purchased 4,410 4,260 6,500 15,170 Cost 5 5 5 Purchases 22,050 $ 21,300 $ 32,500 $ 75,850

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

1) can i get help with this question I am kinda stuck thank you 

Problem 1.
For the first quarter of 2021, ABC Firm prepared the following sales budget and purchases budget.
Sales Budget
April
May
June
Total
Unit Sales
4,600
3,500
7,300
15,400
SP
8
8
8
8
Sales
36,800 $
28.000 $
58,400 $
123,200
Purchases Budget
April
May
June
Total
Unit Sales
4,600
3,500
7,300
15,400
El
700
1,460
660
660
Unit Required
5,300
4,960
7,960
16,060
BI
890
700
1,460
890
Units 2 B Purchased
4,410
4,260
6,500
15,170
Cost
5
Purchases
22,050 $
21,300 $
32,500 $
75,850
The firm sells 75% of its items on account. Of the items sold on account, 20% are collected in the month of the sale. The month after the sale, the firm
collects 50% and the month after that, it collects 25%.
Actual units sales in January were 4,800. In February unit sales were 2,700 and in March, they were 5,900.
1. What is the firm's apparent policy for inventory on hand at the end of each month?
Transcribed Image Text:Problem 1. For the first quarter of 2021, ABC Firm prepared the following sales budget and purchases budget. Sales Budget April May June Total Unit Sales 4,600 3,500 7,300 15,400 SP 8 8 8 8 Sales 36,800 $ 28.000 $ 58,400 $ 123,200 Purchases Budget April May June Total Unit Sales 4,600 3,500 7,300 15,400 El 700 1,460 660 660 Unit Required 5,300 4,960 7,960 16,060 BI 890 700 1,460 890 Units 2 B Purchased 4,410 4,260 6,500 15,170 Cost 5 Purchases 22,050 $ 21,300 $ 32,500 $ 75,850 The firm sells 75% of its items on account. Of the items sold on account, 20% are collected in the month of the sale. The month after the sale, the firm collects 50% and the month after that, it collects 25%. Actual units sales in January were 4,800. In February unit sales were 2,700 and in March, they were 5,900. 1. What is the firm's apparent policy for inventory on hand at the end of each month?
The firm sells 75% of its items on account. Of the items sold on account, 20% are collected in the month of the sale. The month after the sale, the firm
collects 50% and the month after that, it collects 25%.
Actual units sales in January were 4,800. In February unit sales were 2,700 and in March, they were 5,90o.
1. What is the firm's apparent policy for inventory on hand at the end of each month?
2. What are expected unit sales for July?
3. Prepare a properly formatted budget of cash collections.
Transcribed Image Text:The firm sells 75% of its items on account. Of the items sold on account, 20% are collected in the month of the sale. The month after the sale, the firm collects 50% and the month after that, it collects 25%. Actual units sales in January were 4,800. In February unit sales were 2,700 and in March, they were 5,90o. 1. What is the firm's apparent policy for inventory on hand at the end of each month? 2. What are expected unit sales for July? 3. Prepare a properly formatted budget of cash collections.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Money Management and Achieving Financial Goals
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education