Xenos Company Has the Following Sales Projections for the Coming

question 32

Essay

Xenos Company has the following sales projections for the coming months: $$\begin{array} { | l | r | } \hline \text { Month } & \text { Sales } \\\hline \text { January } & \$ 60,000 \\\hline \text { February } & 68,000 \\\hline \text { March } & 75,000 \\\hline \text { April } & 80,000 \\\hline \text { May } & 95,000 \\\hline \text { June } & 90,000 \\\hline\end{array}$$
Xenos collects 20% of its sales in the month of sale,45% in the month following the sale,and 35% in the second month following the sale.Required:
a.Prepare a schedule of cash receipts for the three months April through June.b.What would be the accounts receivable balance on June 30?

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Definitions:

Machine-Hours

A measure of the amount of time machines are running in the production process, used to allocate manufacturing overhead costs.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

Machine-Hours

A measure used in accounting to allocate manufacturing overhead costs to products based on the number of hours machines are used in the production process.

Markup

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.