Question 38

The controller of Harrington Company estimates sales and production for the first four months of 2020 as follows:

JanuaryFebruaryMarchAprilSales$31,700$42,000$52,500$26,100Production in units1,1001,4001,9002,500

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 materials 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 and 60% the following month. Ending direct materials inventory for each month is 40% of the next month's production needs.

January's beginning materials inventory is 1,020 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.

(a)

Your answer is correct.What are the total cash sales for the January-March quarter?

Total cash sales50480$

SHOW ANSWER

LINK TO TEXT

Attempts: 1 of 2 used

(b)

Your answer is correct.What is the accounts receivable balance at the end of March?

Accounts receivable balance12600$

SHOW ANSWER

LINK TO TEXT

Attempts: 1 of 2 used

(c)

Your answer is correct.What is the direct materials inventory balance at the end of March?

Direct materials inventory balance4000

kgSHOW ANSWER

LINK TO TEXT

Attempts: 1 of 2 used

(d)

Your answer is correct.What are the materials purchases costs for February?

Material purchases for February32000$

SHOW ANSWER

LINK TO TEXT

Attempts: 2 of 2 used

(e)

Your answer is incorrect. Try again.What are cash payments on account for February?

Cash payments on account29420$

just letter e please, thank you