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9‐21,22,24,25 (1) (2) E29 (1) P9‐35
EXERCISE 9-21 (20 MINUTES)
Sales in units:
Notice that the amount of sales on account in June, $122,500 was not needed to
solve the exercise.
Amount Collected
Credit
Month of Sale Sales October November December
October ............................................ $225,000 $157,500 $ 33,750 $ 22,500
November ........................................ 250,000 – 175,000 37,500
December ........................................ 212,500 – – 148,750
Total ................................................. $157,500 208,750 $208,750
Total collections in fourth quarter
from credit sales in fourth
quarter ......................................... $575,000
3. In the electronic version of the solutions manual, press the CTRL key and
click on the following link: BUILD A SPREADSHEET
2. Purchases of raw material (in units), assuming production of 3,500,000 finished units:
1.
Total Sales in January 20x5
$200,000 $260,000 $320,000
Cash receipts in January, 20x5
From December sales on account ........... $ 14,250* $ 14,250 $ 14,250
From January cash sales .......................... 150,000† 195,000 240,000
From January sales on account ............... 40,000** 52,000 64,000
Total cash receipts .................................... $ 204,250 $261,250 $318,250
PROBLEM 9-35 (25 MINUTES)
1. Sales budget
3. Raw-material purchases
4. Direct-labor budget
5. In the electronic version of the solutions manual, press the CTRL key
and click on the following link: BUILD A SPREADSHEET