Topaz Company Has the Following Expected Pattern of Collections on Credit

question 30

Multiple Choice

Topaz Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.At the end of May,Topaz Company has the following accounts receivable balances: $\begin{array}{lr}\text {From April sales }&\$21,000\\\text {From May sales }&48,000\\\end{array}$
Topaz's expected sales for June are $150,000.What were total sales for April?

• A)$150,000
• B)$72,414
• C)$70,000
• D)$140,000

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Definitions:

Manufacturing Operations

All activities related to the production of goods, from raw material procurement to final product delivery.

Raw Materials Used

The basic materials consumed in the production process, not including labor or manufacturing overhead.

Factory Overhead Costs

Factory overhead costs are indirect expenses related to manufacturing, such as utilities, maintenance, and property taxes for the production facility.

Cost Information

Data related to the expenses incurred in the production, operation, or acquisition of goods and services, used for financial analysis and decision-making.