Questions 30 and 31 are based on the following data The Khaki Company has obtain
ID: 2544637 • Letter: Q
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Questions 30 and 31 are based on the following data The Khaki Company has obtained the following sa sales budget data: March $300,000 S 80,000 April $320,000 s 70,000 January Credit Sales Cash Sales February $350,000 s 90,000 $ 70,000 , 50% in the month month of sale. There are no The regular pattern of collection of credit sales is 40% in the month of sale. following sale, and the remainder in the second month following the bad debts. 30. The budgeted cash receipts for April would be: a. $350,000. b. $320,000, c. $313.000 d. $343,000. e. None of the above. 31·The budgeted accounts receivable balance on February 28 would a. $250,000. b. $210,000. c. $175,000. d. $215.000. e. None of the above. 32. The materials price variance should be computed: a. When materials are purchased b. When materials are used in production. e. Based upon the amount of materials used in production when only a portion of materials purchased is actually used. d. Based upon the difference between the actual quantity of inputs and the standard quantity allowed for output times the standard price. 33. The materials quantity variance should be computed: When materials are purchased. Based upon the amount of materials used in production when only a portion of materials purchased is actually used. Based upon the difference between the actual and standard prices per unit times the actual quantity used a. b. c. d. None of the above.Explanation / Answer
Q30. Answer is e. None of these Explanation: Cash collected in April: Cash s ales in April 70,000 40% of Credit sales of April ($ 320000) 128,000 50% of Credit sales in March($ 300,000) 150,000 10% of credit sales in Feb ($350,000) 35,000 Cash collection in April 383,000 Q31. Answer is a. $ 250,000 Explanation: Budgeted Accounts recivable for Feb: Accounts rececivable from jan sales (10% of $400,000) 40000 Accounts receivable from Feb sales (60% of 350,000) 210000 Budgeted Accounts recivable for Feb: 250,000 Q32. Answer is a. when material are purchased. Q33. Answer is b. Based upon the amount of material used in production when only a portion of material purchased is actually used.
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