Question 34 The controller of Harrington Company estimates sales and production for the first four months of 2016 as follows January February March April Sales $30,200 $42,900 $54,800 $27,800 Production in units 1,030 1,550 2,170 2,590 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 1,648 kg Suppose that both accounts receivable and accounts payable are zero at the beginning of January Answer the following questions (a) What are the total cash sales for the JanuaryMarch quarter Total cash sales $ SHOW ANSWER LINK TO TEXT Attempts 1 of 2 used (b) What is the accounts receivable balance at the end of March Accounts receivable balance $ SHOW ANSWER LINK TO TEXT Attempts 1 of 2 used (c) What is direct materials inventory balance at the end of March Direct materials inventory balance kg SHOW ANSWER LINK TO TEXT Attempts 1 of 2 used (d) What are material purchases costs for February Material purchases for February $ SHOW ANSWER LINK TO TEXT Attempts 1 of 2 used (e) Your answer is correct What are cash payments on account for February (Round answer to 0 decimal places, e g 125 ) Cash payments on account $ SHOW ANSWER LINK TO TEXT Attempts 1 of 2 used (f) Your answer is correct What is the ending balance in accounts payable for March (Round answer to 0 decimal places, e g 125 ) Ending balance in accounts payable SHOW ANSWER LINK TO TEXT Attempts 1 of 2 used (g) Your answer is correct What is the cash balance for the period JanuaryMarch (Round answer to 0 decimal places, e g 125 ) Cash balance $

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 13, 2024

Question 34 The controller of Harrington Company estimates sales and production for the first four months of 2016 as follows: January February March April Sales

Question 34

The controller of Harrington Company estimates sales and production for the first four months of 2016 as follows:

	January	February	March	April
Sales	$30,200	$42,900	$54,800	$27,800
Production in units	1,030	1,550	2,170	2,590

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 1,648 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January. Answer the following questions: