BUSN9117 Management and Cost Accounting – Hilda Ltd manufactures and sells two products: ThingOne and ThingTwo
QUESTION Hilda Ltd manufactures and sells two products: ThingOne and ThingTwo. With the recent downturn in the market, Hilda experienced a decline in financial performance. The management team is in the process of preparing the 2018 budget and put together the following budgeted information. Annual sales are expected to be 5,000 units. Budgeted sales for the month of October and November 2018 are provided below (Table 1). All sales are on credit. Hilda Ltd expects to collect 40 percent of accounts receivable in the month of sale, 59% are collected the following month and 1% are never collected and are written off as bad debts. Hilda Ltd recorded sale revenue of $74,100 for ThingOne and $105,000 for ThingTwo during the…
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