Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The controller of Oriole Company estimates sales and production for the first four months of 2022 as follows: January. February. March April Sales. $32,700 $42,800.

The controller of Oriole Company estimates sales and production for the first four months of 2022 as follows:

January. February. March April

Sales. $32,700 $42,800. $49,500 $27,100

Production in units 900 1,600. 1,900 2,300

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 months production needs. Januarys beginning materials inventory is 980 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.

Questions:

D) What are the materials purchases costs for February?

E). What are cash payments on account for February?

F) What is the ending balance in accounts payable for March?

G)What is the change in the cash balance for the period JanuaryMarch?

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

Internal Revenue Service Status Of GAO Financial Audit And Related Financial Management Recommendations

Authors: Government Accountability Office

1st Edition

1492351571, 978-1492351573

More Books

Students also viewed these Accounting questions

Question

Show that the equation has exactly one real solution.

Answered: 1 week ago

Question

4. Identify cultural variations in communication style.

Answered: 1 week ago

Question

9. Understand the phenomenon of code switching and interlanguage.

Answered: 1 week ago

Question

8. Explain the difference between translation and interpretation.

Answered: 1 week ago