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  • Budgeting - Solutions To Dilly Company Sample Questions in The Module - Questions 16 To 20 P 139 On Cabrera Book

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    Vinabie Puno
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    The document shows cost of sales and purchases for January and February. In January, net cost of purchases was P1,457,280 with 60% paid that month and 40% the next. In February, net cost of purchases was P1,587,960 with payments totaling P1,535,688 for that month and the prior month. Collections in February totaled P1,861,750 from current and previous month sales along with cash sales.

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    Budgeting _ Solutions to Dilly Company Sample Questions in the Module_questions 16 to 20 p 139 on Cabrera Book (1)

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    The document shows cost of sales and purchases for January and February. In January, net cost of purchases was P1,457,280 with 60% paid that month and 40% the next. In February, net cost of purchases was P1,587,960 with payments totaling P1,535,688 for that month and the prior month. Collections in February totaled P1,861,750 from current and previous month sales along with cash sales.

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    42 views1 page

    Budgeting - Solutions To Dilly Company Sample Questions in The Module - Questions 16 To 20 P 139 On Cabrera Book

    Uploaded by

    Vinabie Puno
    The document shows cost of sales and purchases for January and February. In January, net cost of purchases was P1,457,280 with 60% paid that month and 40% the next. In February, net cost of purchases was P1,587,960 with payments totaling P1,535,688 for that month and the prior month. Collections in February totaled P1,861,750 from current and previous month sales along with cash sales.

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    © All Rights Reserved
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    of 1

    Questions 6 to 10:

    January February
    Cost of sales P1,400,000 P1,640,000
    Add: Desired Minimum Inventory 492,000 456,000
    Total 1,892,000 2,096,000
    Less: Beginning Inventory (1,400,000 x 0.3) (7) 420,000 492,000
    Gross Purchases 1,472,000 1,604,000
    (6)
    Less: Cash discount 14,720 16,040
    Net cost of purchases P1,457,280 P1,587,960

    Payments of Purchases
    60% - month of purchase P874,368 P 952,776
    40% - following month 582,912
    Total (8) P1,535,688

    (9)
    February
    Cash
    Gross Discount Net
    Current month’s sales (with discount) 35%
    P595,000 P11,900 P583,100
    Current month’s sales (without discount) 15% 255,000 0 255,000

    Previous month’s sales (with discount) 4.5% 67,500 1,350 66,150


    Previous month’s sales (without discount) 40.5% 607,500 607,500
    P1,525,00 P13,250 P1,511,750
    0

    (10)Total Collections in February P1,511,750


    Add: Cash sales 350,000
    Total P1,861,750
    Estimated cash receipts
    Collections from customers P1,350,000
    Proceeds from issuance of common stock 500,000
    Proceeds from short-term borrowing 100,000
    Total P1,950,000

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