NIU Companys budgeted sales and direct materials purchases a

NIU Company\'s budgeted sales and direct materials purchases are as follows: Budgeted D Januar FebruaryY March Budgeted Sales $261,300 250,900 344,000 Materials Purchases 39,300 43,300 44,000 of sale, 50% i e month follo ng sale, and 35% í he second month Ollo ng sale; 4% are uncollectible. NIU\'s purchases are 50% cash and 50% ? account t pays purchases on account NIU s sales are 40% cash and 60% credit t collects credit sales 10% n the mon 60% in the murth uf purchase, and 40% in the murth following purchase. prepare a schedule af expected collections from customers for March. (Round ?nswers to the nearest whole dollar, e.g. 5,215.) NIU COMPANY Schedule of Expected Collections from Customers For the Month Ending March 31, 2016 January-credit sales February-credit sales March-cash sales March-credit sales Total expected collections from oustomers Prepare a schedule of expected payments for direct materials for March. (Round answers to the nearest whole dollar, e.g. 5,275) NIU COMPANY Schedule of Expected Payments for Direct Materials For the Month Ending March 31, 2016 March-cash payments March-credit payments Total expected payments S

Solution

Answer

NIU COMPANY

Schedule for Expected Collection from Customers

For the month Ending March 31,2016

NIU COMPANY

Schedule for Expected Payment for Direct Material

For the month Ending March 31,2016

January - credit sales [$261,300 * 60 % *36 %]	56,441
Febuary - credit sales [$250,800 * 60 % * 50 %]	75,240
March -cash sales [$344,000 *40%]	137,600
March - credit sales [$344,000 * 60 % * 10 %]	20,640
Total expected collection from customers	$289,921