a. PLANE corp pays for 50% of its direct materials purchases in the month of purchase and the remainder the following month. Last month's direct material purchases were $75,000, while the company anticipates $87,000 of direct material purchases next month.

b.Direct labor for the upcoming month is budgeted to be $36,000 and will be paid at the end of the upcoming month.

c. Manufacturing overhead is estimated to be 150% of direct labor cost each month and is paid in the month in which it is incurred. This monthly estimate includes $17,000 of depreciation on the plant and equipment.

d. Monthly operating expenses for next month are expected to be $49,000, which includes $2,300

of depreciation on office equipment and $1,500 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred.

e.Plane will be making an estimated tax payment o f$7,300 next month.

is preparing Plane Corp its cash payments budget for next month. The following information pertains to the cash payment: How much cash will be paid out next month?

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Part 1

Plane corp
Cash Payments Budget
Cash payments for direct materials:
50% of last month's purchases
50% of next month's purchases
Cash payments for direct labor
Cash payments for manufacturing overhead
Cash payments for operating expenses
Cash payment for taxes
Total cash payments