Baltimore Enterprises has budgeted sales for the months of September and October at $300,000 and $280,000, respectively. Monthly sales are 80% credit and 20% cash. Of the credit sales, 50% are collected in the month of sale and 50% are collected in the following month. Calculate cash collections for the month of October. A) $168,000 B) $232,000 C) $288,000 D) $290,000
The budgeted production of Fells Point Inc. is 8,000 units. Each unit requires 40 minutes of direct labor work to complete. The direct labor rate is $100 per hour. Calculate the budgeted cost of direct labor for the month. A) $533,333.33 B) $500,000.00 C) $566,666.66 D) $633,333.33
The companies give the products or material on the credit to the customers. The payment is done late by the customers. Hence the cash collection refers to the collection of the credited cash in a given time period.
Answer and Explanation:
|Cash Sales||$60,000 ...|
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Finance 101: Principles of FinanceChapter 18 / Lesson 3