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The controller of Bramble Company estimates sales and production for the first four months of 2022 as follows: Sales Production in units January $29,400 1,100 February March $39,100 (a) 1,500 April $54,300 $24,300 2,000 2,200 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 970 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.

The controller of Bramble Company estimates sales and production for the first four months of 2022 as follows: Sales Production in units January $29,400 1,100 February March $39,100 (a) 1,500 April $54,300 $24,300 2,000 2,200 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 970 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Dd.1.

What are cash payments on account for February?

 

2. What is the ending balance in accounts payable for March?

 

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

 

The controller of Bramble Company estimates sales and production for the first four months of 2022 as follows: Sales Production in units January $29,400 (a) 1,100 February March $39,100 Your answer is correct. 1,500 Total cash sales $ 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. April $54,300 $24,300 January's beginning materials inventory is 970 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January. 2,000 What are the total cash sales for the January-March quarter? 49120 2,200
Transcribed Image Text:The controller of Bramble Company estimates sales and production for the first four months of 2022 as follows: Sales Production in units January $29,400 (a) 1,100 February March $39,100 Your answer is correct. 1,500 Total cash sales $ 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. April $54,300 $24,300 January's beginning materials inventory is 970 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January. 2,000 What are the total cash sales for the January-March quarter? 49120 2,200
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