Hagen Company's Budgeted Sales and Direct Materials Purchases Are as Follows

question 112

Essay

Hagen Company's budgeted sales and direct materials purchases are as follows. $$\begin{array} { l c c } & \text { Budgeted Sales } & \text { Budgeted D.M. Purchases } \\\text { January } & \$ 300,000 & \$ 60,000 \\\text { February } & 330,000 & 70,000 \\\text { March } & 350,000 & 80,000\end{array}$$ Hagen'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. Hagen'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
(a) Prepare a schedule of expected collections from customers for March.
(b) Prepare a schedule of expected payments for direct materials for March.

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Definitions:

Normal Model

A statistical model that describes how data points are dispersed or distributed in a pattern that resembles a bell curve, implying a symmetrical dataset.

Unusually High

A term indicating that a value or quantity is significantly greater than what is typically expected or observed.

Annual Snowfall

The total amount of snowfall recorded in a specific location over the course of one year.

Normal Probability Plot

A graphical technique for assessing whether or not a data set is approximately normally distributed.