NIU Company\'s budgeted sales and direct materials purchases are as follows lanu

Question

NIU Company's budgeted sales and direct materials purchases are as follows lanuary February March Budgeted Sales $261,300 250,800 344,000 Budgeted Direct Materials Purchases $39,300 43,300 44,000 NIU's sales are 40% cash and 60% credit. It collects credit sales 10% in the month of sale, 50% in the month following sale and 36% in the second month following sale; 4% ure uncollectible. NIU's purchases are 50% cash and 50% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase Prepare a schedule of expected collections from customers for March. (Round answers to the nearest whole dollar, e.g. 5,275.) NIU COMPANY Schedule of Expected Collections from Customers For the Month Ending March 31, 2016 January-credit sales February-credit sales March-cash sales March-credit sales Total expected collections from customers Prepare a schedule of expected payments tor direct materials for March. (Round answers to the nearest whole dollar, e.g. 5,275.) NIU COMPANY Schedule of Expected Payments for Direct Materials For the Month Ending March 31, 2016 dit purchases March-cash payments March-credit payments

Explanation / Answer

1 January-credit sales 56441 =261300*60%*36% February-credit sales 75240 =250800*60%*50% March-cash sales 137600 =344000*40% March-credit sales 20640 =344000*60%*10% Total expected collections from customers 289921 2 February-Credit purchases 8660 =43300*50%*40% March- Cash payments 22000 =44000*50% March- Credit payments 13200 =44000*50%*60% Total expected payments 43860

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