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

question 55

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.
Material purchases for February are:

• A) 8,496 kilograms
• B) 6,192 kilograms
• C) 5,868 kilograms
• D) 5,328 kilograms

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Definitions:

Social Species

Species characterized by complex interactions within their communities, often involving cooperative living, communication, and social structures.

Solitary Nesters

Animals that prefer to build and inhabit nests alone rather than in communal or shared spaces.

Natal Nests

The nests or birthplaces from where individuals originate and often return to for reproduction.

Proximate Or Ultimate

Causes explaining behaviors: "proximate" refers to the how (mechanisms behind it), "ultimate" refers to the why (evolutionary purpose).