Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1-3 is done (hopefully correctly) need help with 4-8 4. Cash Payments of Materials Purchases: Johnson Inc. purchases raw materials on account for use in

1-3 is done (hopefully correctly) need help with 4-8 image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
4. Cash Payments of Materials Purchases: Johnson Inc. purchases raw materials on account for use in production. Sheets of metal used in production cost $2.00 each. Sixty-five percent of a month's purchases are paid for in the month of purchase; the other thirty-five percent is paid for in the following month. No discount terms are available. The accounts payable balance on June 30 is $24,200. Required: Prepare a cash payments for materials purchases budget and answer the following questions: 1. How much cash is required for payments made on account, payable in the month of July? 2. How much cash is required for payments made on account, payable in the month of August? 3. How much cash is required for payments made on account, payable in the month of September? 4. What is the accounts payable balance on September 30, 2017? Check Figure: Total budgeted cash payments made for materials purchases for the quarter- S282,580 5. Cash Payments for Direct Labor: Each unit produced requires 30 minutes (0.5 hours) of direct labor. Employees are paid at a rate of $7.00 per hour. Required: Prepare a cash payments for direct labor budget, showing total labor cost by month and in total for the quarter. Check Figure: Total budgeted cash payments made for direct labor for the quarter -S167,563 6. Cash Payments for Manufacturing Overhead Variable manufacturing overhead is $1.50 per unit produced and fixed manufacturing overhead is $25,000 per month. Fixed manufacturing overhead includes S10,000 in depreciation which does not require a cash outflow. Required Prepare a cash payments for manufacturing overhead budget, showing total manufacturing overhead cost by month and in total for the quarter. Check Figure: Total budgeted cash payments made for manufacturing overhead for the quarter S116,813

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Only Tax Audit Guide Youll Ever Need

Authors: Janet M. Sydlaske, Richard K. Millcroft

1st Edition

ISBN: 0471510769, 978-0471510765

More Books

Students also viewed these Accounting questions