Question

The controller of Harrington Company estimates sales and production for the first four months of 2020...

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

January February March April
Sales $28,700 $38,200 $50,900 $25,800
Production in units 1,100 1,500 1,800 2,800

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 1,010 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.

What are the total cash sales for the January–March quarter?

What is the accounts receivable balance at the end of March

What is the direct materials inventory balance at the end of March?

What are the materials purchases costs for February?

What are cash payments on account for February?

What is the ending balance in accounts payable for March?

What is the change in the cash balance for the period January–March?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The controller of Harrington Company estimates sales and production for the first four months of 2016...
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...
The controller of Harrington Company estimates sales and production for the first four months of 2016...
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...
Question 38 The controller of Harrington Company estimates sales and production for the first four months...
Question 38 The controller of Harrington Company estimates sales and production for the first four months of 2020 as follows: January February March April Sales $33,000 $40,100 $54,500 $26,100 Production in units 1,100 1,600 2,200 2,600 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...
Depotissimo " , has predicted the following sales for the first four months of 2015 January...
Depotissimo " , has predicted the following sales for the first four months of 2015 January $ 6,000 March $    15,000 February $ 11,000 April $    17,000 Monthly purchases of raw materials accounts for 60 % of sales forecast for the next month. Of total raw material purchases , payments are 60% in cash in the same month and 40% on credit. Of credit purchases 70% is paid in the following month and 30% is paid in two months. Predicted...
DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month...
DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month Units Month Units January 10,230 March 5,410 February 8,150 April 4,500 Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2019, the ending raw materials inventory was 6,138 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month’s production requirements. Prepare a direct materials purchases budget by...
Your projected sales for the first 3 months of next year are as follows: January, $15,000;...
Your projected sales for the first 3 months of next year are as follows: January, $15,000; February, $20,000; March, $25,000. Based on last year's data, cash sales are 20 percent of total sales for each month. Of the accounts receivable, 60 percent are collected in the month after the sale and 40 percent are collected in the second month following the sale. Sales for November of the current year are $15,000 and for December are $17,000. You have the following...
Webster Company has the following sales budget.       January            $200,000             February&nbsp
Webster Company has the following sales budget.       January            $200,000             February           $240,000             March               $300,000             April                  $360,000       Cost of sales is 70% of sales. Sales are collected 40% in the month of sale and 60% in the following month. Webster keeps inventory equal to double the coming month's budgeted sales requirements. It pays for purchases 80% in the month of purchase and 20% in the month after purchase. Inventory at the beginning of January is $190,000.   Webster...
Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases...
Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $215,000 $33,800 February 253,000 44,500 March 262,000 39,200 Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase,...
Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases...
Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $237,300 $33,500 February 230,100 38,900 March 329,800 38,300 Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase,...
eWitt Industries has adopted the following production budget for the first 4 months of 2020. Month...
eWitt Industries has adopted the following production budget for the first 4 months of 2020. Month Units Month Units January 10,130 March 5,250 February 8,110 April 4,260 Each unit requires 5 pounds of raw materials costing $4 per pound. On December 31, 2019, the ending raw materials inventory was 10,130 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month’s production requirements. Prepare a direct materials purchases budget by...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT