please explain the answer 6) Delleate, Inc. has prepared the following direct ma

Question

please explain the answer

6) Delleate, Inc. has prepared the following direct materials purchases budget Budgeted DM Purchases Month June ul August September October 68,000 500 6,300 5,000 All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate total cash payments made in October for purchases 6) A) $75,220 7) Zale, Inc. has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb March Sales (20% cash) 400,000 600,000 800,000 The company collects 70% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February. 7) A) $552,000

Explanation / Answer

Req 6 Cash payment made in the month of october: Purchase of August paid in october(76300*40%) 30520 Purchase of September paid in October(75000*50%) 37500 Purchase of October paid in same month(72000*10%) 7200 Total payment made 75220 Req 7: Cash collection in the month of feb: Collection of credit sales of jan in Feb (400,000*80%*30%) 96000 Cash Sales of feb (600,000*20%) 120000 Credit sales of Feb month collected in same month(600,000*80%*70%) 336000 Total collections made 552000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.