Assignment acct3001

School: College of North Atlantic Qatar - Course: AC 3001 - Subject: Accounting

Chapter 8 Review Exercises 1.Budgeted sales in Acer Corporation over the next four months are given below: SeptemberOctoberNovemberDecember Budgeted sales $120,000$140,000$180,000$160,000 30% of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be: 2.Crocetti Corporation makes one product: Budgeted selling price per unit $ 121 Budgeted unit sales (all on credit): January 7,000 February 7,500 March 11,900 April 14,900 Credit sales are collected: 40% in the month of the sale, 60% in the following month The budgeted accounts receivable balance at the end of February is closest to: Chapter 8 Review Exercises 3.The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash SalesCredit Sales January $30,000$130,000 February$35,000$150,000 March $41,000$110,000 April $36,000$121,000 May $46,000$180,000 June $60,000$150,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 40% in month of sale 40% in month following sale 20% in second month following sale The accounts receivable balance on January 1 of the current year was $81,000, of which $60,000 represents uncollected December sales and $21,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be: ○ $201,000 ○ $ 187,000 ○ $100,000 ○ $143,000 4.Parwin Corporation plans to sell 24,000 units during August. If the company has 8,500 units on hand at the start of the month, and plans to have 9,500 units on hand at the end of the month, how many units must be produced during the month?