Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Draper Company provided the following information relating to cash payments: Draper purchased direct materials on account in the following amounts: June P76,000 July P82,000 August

Draper Company provided the following information relating to cash payments:

  1. Draper purchased direct materials on account in the following amounts:

June P76,000

July P82,000

August P69,000

  1. Draper pays 15% of accounts payable in the month of purchase and the remaining 85% in the following month.
  2. In July, direct labor cost was P34,500. August direct labor cost was P36,700. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month.
  3. August overhead amounted to P83,200, including P5,900 of depreciation.
  4. Draper had taken out a loan of P35,000 on May 1. Interest, due with payment of principal, accrued at the rate of 12% per year. The loan and all interest were repaid on August 31.

Required: schedule of cash payments for Draper Company for the month of August.

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

Cost-Benefit Analysis For Public Sector Decision Makers

Authors: Diana Fuguitt

1st Edition

1567202225, 9781567202229

More Books

Students also viewed these Accounting questions

Question

Why are there no sp4 or sp5 hybrid orbitals?

Answered: 1 week ago

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago