Sales Are 30% Cash and 70% on Account, and 60

question 54

Multiple Choice

$$\begin{array} { l c c c c c } & \text { January } & \text { February } & \text { March } & { \text { April } } \\\text { Sales } & \$ 26,400 & \$ 23,100 & \$ 33,000 & \$ 25,000 \\\text { Production in units } & 990 & 1,440 & 1,710 & 1,200\end{array}$$ Sales are 30% cash and 70% on account, and 60% of credit sales are collected in the month of the sale. In the month after the sale, 30% of credit sales are collected. The remainder is collected two months after the sale. It takes 4 kilograms of direct material to produce a finished unit, and direct materials cost $5 per kilogram. All direct materials purchases are on account, and are paid as follows: 40% in the month of the purchase, 50% the following month, and 10% in the second month following the purchase. Ending direct materials inventory for each month is 40% of the next month's production needs. January's beginning materials inventory is 1,080 kilograms. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.
(Appendix 10A) The accounts receivable balance at the end of March is:

• A) $9,240
• B) $17,325
• C) $15,477
• D) $10,857

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Definitions:

Fixed-Interval Schedule

A type of reinforcement schedule in operant conditioning where rewards are provided after a specific, constant period of time has passed.

Variable-Ratio Schedule

A reinforcement schedule in which the number of responses needed for a reward varies, this schedule tends to produce a high and consistent rate of response.

Fixed-Ratio Schedule

A type of reinforcement schedule in behaviorist theories where a response is reinforced only after a specified number of responses.

Violent Shows

Television or online content that prominently features acts of physical force intended to hurt, damage, or kill someone or something.