question archive Question Two: (24 marks) (B1, C1) Part A: (10 marks) Ahlia Company's budgeted sales and direct materials purchases are as follows
Question Two: (24 marks) (B1, C1) Part A: (10 marks) Ahlia Company's budgeted sales and direct materials purchases are as follows
Subject:BusinessPrice: Bought3
Question Two: (24 marks) (B1, C1) Part A: (10 marks) Ahlia Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January 2021 $300,000 $60,000 February 2021 330,000 70,000 March 2021 350,000 80,000 Ahlia's sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Ahtia's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. Instructions (S marks each) 1) Prepare a schedule of expected collections from customers for March 2021 2) Prepare a schedule of expected payments for direct materials for March 2021
