Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April 45,000 55,000 May 35,000 45,000 June Sales 55,000 45,000 Production Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 25% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $70,000 per month. The accounts payable balance on March 31 totals $174,000, which will be paid in April. All units are sold on account for $19 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 $433,000 ($93,000 from February's sales and $340,000 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.

Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April 45,000 55,000 May 35,000 45,000 June Sales 55,000 45,000 Production Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 25% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $70,000 per month. The accounts payable balance on March 31 totals $174,000, which will be paid in April. All units are sold on account for $19 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 $433,000 ($93,000 from February's sales and $340,000 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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...

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