Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 10-39A (Part Level Submission) The controller of Harrington Company estimates sales and production for the first four months of 2016 as follows: January February

Problem 10-39A (Part Level Submission)

The controller of Harrington Company estimates sales and production for the first four months of 2016 as follows:
January February March April
Sales $34,500 $42,800 $53,100 $24,800
Production in units 1,090 1,530 2,020 2,520

Sales are 40% cash and 60% on account, and 60% of credit sales are collected in the month of the sale. In the month after the sale, 40% of credit sales are collected. It takes 4 kg of direct material to produce a finished unit, and direct materials cost $5 per kg. All direct materials purchases are on account, and are paid as follows: 40% in the month of the purchase, 60% the following month. Ending direct materials inventory for each month is 40% of the next months production needs. Januarys beginning materials inventory is 1,744 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.

What is the cash balance for the period JanuaryMarch? (Round answer to 0 decimal places, e.g. 125.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Identify key cultural nursing theories.

Answered: 1 week ago