Reference no: EM132925632
Question - A company makes one product and has provided the following information to help prepare the master budget.
The budgeted selling price per unit is $65. Budgeted unit sales for January, February, March and April are 9,300, 24,000, 26,000, and 27,000 units, respectively. All sales are on credit.
Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
1. Calculate February's expected cash collections.
2. Calculate the accounts receivable balance at the end of February.
3. According to the production budget, calculate the number of units that should be produced in February.
The ending finished goods inventory equals 30% of the following month's unit sales.
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