January February Sales $460,800 $512,000 Direct materials purchases 153,600 160,000 Direct labor 115,200 128,000 Manufacturing overhead...

Transcribed Image Text:

January February Sales $460,800 $512,000 Direct materials purchases 153,600 160,000 Direct labor 115,200 128,000 Manufacturing overhead 89,600 96,000 Selling and administrative expenses 101,120 108,800 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) 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 other items above are paid in the month incurred except for selling and administrative expenses that include $1,280 of depreciation per month. Other data: 1. Credit sales: November 2021, $320,000; December 2021, $409,600. 2. Purchases of direct materials: December 2021, $128,000. 3. Other receipts: January-Collection of December 31, 2021, notes receivable $19,200; January February Sales $460,800 $512,000 Direct materials purchases 153,600 160,000 Direct labor 115,200 128,000 Manufacturing overhead 89,600 96,000 Selling and administrative expenses 101,120 108,800 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) 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 other items above are paid in the month incurred except for selling and administrative expenses that include $1,280 of depreciation per month. Other data: 1. Credit sales: November 2021, $320,000; December 2021, $409,600. 2. Purchases of direct materials: December 2021, $128,000. 3. Other receipts: January-Collection of December 31, 2021, notes receivable $19,200;