Use the Following Information for the Next 7 Questions

question 32

Multiple Choice

Use the following information for the next 7 questions. 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 pounds of direct material to produce a finished unit, and direct materials cost $5 per pound. 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 pounds. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.
-Total cash sales for the January - March quarter are

• A) $69,135
• B) $62,700
• C) $24,750
• D) $49,500

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Definitions:

Pay Increases

Adjustments made to an employee's base salary to reflect changes in performance, market conditions, or cost of living.

Public Sector

The part of the economy composed of both public services and public enterprises, owned and operated by the government.

Generate Revenue

The process of producing income through sales of products, services, or other mechanisms within a business.

Compensation Survey

A tool used by organizations to gather and analyze competitive salary information in order to determine appropriate compensation levels for their employees.