The controller of Whispering Winds Company estimates sales and production for the first four months of 2022 as follows:
January
February
March
April
Sales
$30,200 $38,600 $54,400 $23,000
Production in units
900 1,700 1,800 2,700
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 1,060 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.
Attempts: 1 of 2 used
(e)
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What are cash payments on account for February?
Cash payments on account $enter the cash payments on account in dollars
