Evaluate the amount of cash expected to be collected in july

Assignment Help Cost Accounting

Reference no: EM132305

Question:

Jo Company has the following budgeted sales:

April May June July

Credit sales $ 320,000 300,000 350,000 400,000

Cash sales $ 70,000 80,000 90,000 70,000

The historical pattern of collection of credit sales is 30% in the month of sale, 60% in the month given the month of sale, and the remainder in the second month given the month of sale. There are no bad debts.

a) Evaluate the amount of cash expected to be collected in July?

b) Determine the amount of the budgeted accounts receivable balance on May 31?

Ace Company reports the given for the first quarter of 2014:

Sales $700

Fixed Administrative Expenses 110

Fixed Cost of Goods Sold 100

Fixed Selling Expenses 50

Variable Administrative expenses 30

Variable Cost of Goods Sold 220

Variable Selling Expenses 170

(a) Determine Ace's gross profit?

(b) What was Ace's contribution margin?

(d) What assumption does contribution margin analysis make about fixed costs?

Reference no: EM132305

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