ACC 610 Week 7 Problems 2015

| November 9, 2018

ACC
610 – Week 7

1. Band
Instruments Company has the following sales budget for the first three months
of the current year:

Month

Sales Revenue

January

$600,000

February

150,000

March

440,000

Historically, the following trend has
been established regarding cash collection of sales:

65
percent in month of sale25
percent in month following sale 8 percent in second month following sale 2 percent uncollectible

The company allows a 2 percent cash
discount for payments made by customers during the month of the sale. November and December sales were $100,000 and
$200,000, respectively.

Required: Prepare a schedule of
budgeted cash collections from sales for January, February, and March.

2.
Budgeted sales of gloves for Perfect Fit Hands
for the first six months of the year 2014 are as follows:

Months

Unit Sales

January

700,000

February

820,000

March

760,000

April

720,000

May

1,280,000

June

1,500,000

The beginning inventory for 2014 is 210,000
units. The budgeted inventory at the end of a month is 30 percent of units to
be sold the following month. Purchase
price per unit is $7 per unit.

Required: Prepare a purchases budget in units and
dollars for each month, January through May.

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