Sales Production April 61,000 71,000 May 51,000 61,000 June 71,000 61,000 Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 50% 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 $190,000, which will be paid in April. All units are sold on account for $15 each. Cash collections from sales are budgeted at 60% in the month of sale, 25% in the month following the month of sale, and the remaining 15% in the second month following the month of sale. Accounts receivable on April 1 totaled $586,000 ($106,000 from February's sales and $480,000 from March's sales). 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.

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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Solve requriement a and b
Tilson Corporation has projected sales and production in units for the second quarter of the coming
year as follows:
Sales
Production
Required A Required B
April
61,000
71,000
Cash-related production costs are budgeted at $6 per unit produced. Of these production costs,
50% 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 $190,000, which will be paid in April.
All units are sold on account for $15 each. Cash collections from sales are budgeted at 60% in the
month of sale, 25% in the month following the month of sale, and the remaining 15% in the second
month following the month of sale. Accounts receivable on April 1 totaled $586,000 ($106,000 from
February's sales and $480,000 from March's sales).
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.
Production cost
Cash disbursement:
May
51,000
61,000
Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
Production costs this month (50%)
Production costs prior month (50.0%)
Selling and administrative
Total disbursements
April
June
71,000
61,000
0 $
Required A
May
0 $
June
0
Required B >
Transcribed Image Text:Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production Required A Required B April 61,000 71,000 Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 50% 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 $190,000, which will be paid in April. All units are sold on account for $15 each. Cash collections from sales are budgeted at 60% in the month of sale, 25% in the month following the month of sale, and the remaining 15% in the second month following the month of sale. Accounts receivable on April 1 totaled $586,000 ($106,000 from February's sales and $480,000 from March's sales). 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. Production cost Cash disbursement: May 51,000 61,000 Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation. Production costs this month (50%) Production costs prior month (50.0%) Selling and administrative Total disbursements April June 71,000 61,000 0 $ Required A May 0 $ June 0 Required B >
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