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Assignment:
To Industries prepares monthly cash budgets. The following budget information is available for April and May 2020
April
May
Sales
$650,000
$700,000
Direct material purchases
220,000
240,000
Direct labor
175,000
180,000
Manufacturing overhead
120,000
130,000
Selling and administrative expenses
150,000
All sales are credit sales. The company expects to collect 65% from customers in the month of the sale and the remaining 35% in first month following the sale. The company purchases direct materials on account. The company pays for 70% of the purchases in the month of the purchases and the remaining 30% in the first month following the purchase.Direct labor, manufacturing overhead, and selling and administrative expenses are paid in cash in the month incurred.
Additional information:
Required
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