Current Attempt in Progress Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $200,000 $30,000 February 220,000 36.000 March 250,000 38,000 Nieto's sales are 30% cash and 70% credit Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale: 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 405 in the month of purchase and 60% in the month following purchase (a) Prepare a schedule of expected collections from customers for March NIETO COMPANY Expected Collections from Customers March Total collections (b) Prepare a schedule of expected payments for direct materials for March NIETO COMPANY Expected Payments for Direct Materials March
Current Attempt in Progress Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $200,000 $30,000 February 220,000 36.000 March 250,000 38,000 Nieto's sales are 30% cash and 70% credit Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale: 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 405 in the month of purchase and 60% in the month following purchase (a) Prepare a schedule of expected collections from customers for March NIETO COMPANY Expected Collections from Customers March Total collections (b) Prepare a schedule of expected payments for direct materials for March NIETO COMPANY Expected Payments for Direct Materials March
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...
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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:Current Attempt in Progress
Nieto Company's budgeted sales and direct materials purchases are as follows.
Budgeted Sales
Budgeted DM. Purchases
January
$200,000
$30,000
February
220,000
36.000
March
250,000
38,000
Nieto's sales are 30% cash and 70% credit Credit sales are collected 10% in the month of sale, 50% in the month following sale, and
36% in the second month following sale: 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on
account are paid 4056 in the month of purchase, and 60% in the month following purchase
(a)
Prepare a schedule of expected collections from customers for March
NIETO COMPANY
Expected Collections from Customers
March
Total collections
(b)
Prepare a schedule of expected payments for direct materials for March
NIETO COMPANY
Expected Payments for Direct Materials
March
Total payments
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