ACCT 434 Course Great Wisdom / tutorialrank.com ACCT 434 Course Great Wisdom / tutorialrank.com | Page 7

Cash Sales $160,000 $150,000 $120,000
Credit Sales 300,000 400,000 280,000
Total Sales $460,000 $550,000 $400,000
Management estimates that 5% of credit sales are not collectible. Of
the credit sales that are collectible, 60% are collected in the month of
sale and the remainder in the month following the sale. Cost of
purchases of inventory each month are 70% of the next month's
projected total sales. ll purchases of inventory are on account; 25%
are paid in the month of purchase, and the remainder is paid in the
month following the purchase.
Brenton's budgeted total cash payments in March for inventory
purchases are

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ACCT 434 Week 3 Cost Behavior Decision Making Quality
(DEVRY)
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1. Question :
(TCO 3) Dougherty Company employs 20 individuals. Eight
employees are paid $12 per hour and the rest are salaried employees
paid $3,000 a month. How would total costs of personnel be
classified?
2. Question :
(TCO 3) For January, the cost components of a picture frame include
$0.35 for the glass, $0.65 for the wooden frame, and $0.80 for