Sales in units Sales price/unit Total budgeted sales $50,000 $70,000 $90,000 $60

Question

Sales in units Sales price/unit Total budgeted sales $50,000 $70,000 $90,000 $60,000 $80,000 March AiMay JueJuly 5,000 7,000 9,0006,000 8,000 10 10 10 10 10 From experience, the company has learned that a month's sales on account are col following pattern: 60% Month of sale First month following month of sale Uncollectible | 35% 5% Fraley likes to maintain a finished goods inventory equal to 10% of the next m Required: 1. Compute the budgeted cash receipts for May. 2. Compute the budgeted product budget for May.

Explanation / Answer

calcultion of Budgeted Cash Receipts May During the month 60% 54000 April month received in may 24500 78500 $ Budgeted Product Budget for may Budgeted sales for may in units 9000 Closing Inventory for May 6000 Opening Inventor for may 9000 Budgeted Product Budget in units(9000+6000-9000) 6000 Units Budgeted Product Budget (Rs)(6000*10) 60000 $

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