Budgeted Sales for the Second Quarter of the Year for Reuben

question 8

Essay

Budgeted sales for the second quarter of the year for Reuben Company are as follows: $\begin{array}{lc} & \text { Budgeted Sales } \\\text { April } & £ 400,000 \\\text { May } & 200,000 \\\text { June } & 600,000\end{array}$ The company normally collects 60 per cent in the month of sale and 30 per cent in the month following the sale. Ten per cent of all sales are uncollectible and are written off in the following month.
The balance in accounts receivable at April 1 was £200,000, which represents 40 per cent of March sales.

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Definitions:

Service Industries

Sectors of the economy that provide intangible products, such as healthcare, education, and financial services, to consumers and businesses.

Hybrid Costing System

A costing method that combines elements of both job costing and process costing, suitable for industries producing goods with similar but not identical characteristics.

Service Costing System

An accounting approach designed to allocate costs associated with providing a service, often used by companies that primarily offer services instead of products.

Upstream Activity

Activities in the supply chain or production process that occur before the final manufacture or production stage, often involving the extraction or raw material acquisition.