90.2K

Verified Solution

Link Copied!

please show work

a. The company pays for 55% of its direct materials purchases in the month of purchase and the remainder the following month. The company's direct material purchases for March through June are anticipated to be as follows: March April May June $ 111,000 $ 132,000 $ 125,000 $ 143,000 b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budgeted as follows: April May June $ 52,000 $ 62,000 $ 77,000 C. Manufacturing overhead is estimated to be 130% of direct labor cost each month. This monthly estimate includes $36,000 of depreciation on the plant and equipment. All manufacturing overhead (excluding depreciation) is paid in the month in which it is incurred. d. Monthly operating expenses for March through June are projected to be as follows: March May June $ 71,000 $ 83,000 $ 89,000 $ 93,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $15,000 for monthly depreciation on administrative offices and equipment, and $3,200 for bad debt expense. e. The company plans to pay $5,000 (cash) for a new server in May. f. The company must make an estimated tax payment of $14,000 on June 15. April O Point of 1 The Serie Company is preparing is cash paymenis budget. The following me to chats the company is making during the second quarter of the Click on to view the cash payment information Requirement Propea con payments budget for Apr May and durante la not used in the love the body, no The Bear Com Cash Payments Budget For the Month of April through June April May Cash payment for direct mai 55% of current month purchases 45% ont mont's purchase Quarter

Answer & Explanation Solved by verified expert

See Answer