Problem 9-4A (Part Level $430,560 $478,400 143,520149 Direct materials purchases

Question

Problem 9-4A (Part Level $430,560 $478,400 143,520149 Direct materials purchases Direct labor 107,640 83,720 94,484 119,600 89,700 101,660 overhead Selling and administrative expenses All sales are on account. percent (60%) paid in the month incurred except for selling and administrative expenses that include $1,196 of depreciation per month. s are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month follo of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All othe Other data: Credit sales: November 2016, $299,000; December 2016, $382,720. Purchases of direct materials: December 2016, $119,600. 1. 2. 3. Other receipts: January-Collection of December 31, 2016, notes receivable $17,940 4. Other disbursements: February-Payment of $7,176 cash dividend. The company's cash balance on January 1, 2017, is expected to be $71,760. The company wants to maintain a minimum cash balance of $59,800. February-Proceeds from sale of securities $7,176 (a) Prepare schedules for (1) expected collections from customers and (2) expected pa yments for direct materials purchases for January and February. arch

Explanation / Answer

Schedule for expected collections and payments is as prepared below:

Colter Company Expected Collections from Customer January February Total Collection from Customers         November sales (299,000*20%) 59,800         December sales 115,116 76,744         January Sales 215,280 129,168         February sales 239,200 Total Collection from Customers 390,196 445,112 835,308 Colter Company Expected payment to supplier January February Total Direct Material       December Purchase 47,840       January Purchase 86,112 57,408       February Purchase 89,700

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