Clay Corporation has projected sales and production in units for the second quar

Question

Clay Corporation has projected sales and production in units for the second quarter of the coming year as follows Sales Production 53,00043,000 63,000 61,500 51,50051,500 Required: a. Cash-related production costs are budgeted at $5.45 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $130,000 per month. The accounts payable balance on March 31 totals $220,000, which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for Clay Corporation April May June Production cost Cash disbursement Production costs this month Production costs prior month Selling and administrative 0 Total disbursements

Explanation / Answer

220000

(A/c payable)

201105

(335175-134070)

168405

(280675-112270)

9300

(10% of feb sales)

132000

(30% of march sales)

44000

(10% of march sales)

456550

(60%of april sales)

228165

(30%of April sales)

76055

(10%of april sales)

370230

(60%of may sales)

185115

(30% of May sales)

542430

(60% of june sales)

Please give your feedback!! Happy Learning :)

April May June Production Cost (production×$5.45/-) 335175 280675 280675 Cash Disbursement This mnth (40%) 134070 112270 112270 Prior mnth

220000

(A/c payable)

201105

(335175-134070)

168405

(280675-112270)

Selling and admn 130000 130000 130000 Total disbursement 484070 443375 410675

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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