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Business, 02.11.2019 04:31 natashalane8617
Colter company prepares monthly cash budgets. relevant data from operating budgets for 2017 are as follows:
january
february
sales $360,000 $400,000
direct materials purchases 120,000 125,000
direct labor 90,000 100,000
manufacturing overhead 70,000 75,000
selling and administrative expenses 79,000 85,000
all sales are on account. collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. all other items above are paid in the month incurred except for selling and administrative expenses that include $1,000 of depreciation per month.
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Colter company prepares monthly cash budgets. relevant data from operating budgets for 2017 are as f...
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