Ok I'm not wanting someone to do my homework for me I just really don't understand this or how I am suppose to put the budget together. To me it seems like there isn't enough information. Ive been stuck on two problems for the past 4 hours. I have an online class so I can't really get much feed back from the teacher. I try to ask her for help but I can't get a reply out of her. If someone could explain this I would really appreciate it. I really want to learn this because this is the profession I've chosen so if I can't understand it how am I suppose to make a career out of it?
Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
August $100,000
September 185,000
October 225,000
The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third is expected to be collected in the month of the sale and the remainder in the following month.
they are wanting me to prepare a schedule indicating cash collections of accounts receivable for August, September, and October.
and I also have another problem that I have been stuck on.
On October 31, the end of the first month of operations, Carswell & Co. prepared the following income statement based on absorption costing:
Carswell & Co.
Income Statement
For Month Ended October 31, 20-
Sales (2,600 units) $104,000
Cost of goods sold:
Cost of goods manufactured $85,500
Less ending inventory (400 units) 11,400
Cost of goods sold 74,100
Gross profit $ 29,900
Selling and administrative expenses 21,500
Income from operations $ 8,400
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If the fixed manufacturing costs were $42,000 and the variable selling and administrative expenses were $15,600, prepare an income statement in accordance with the variable costing concept.
