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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:
- Draper purchased direct materials on account in the following amounts:
June P76,000
July P82,000
August P69,000
- Draper pays 15% of accounts payable in the month of purchase and the remaining 85% in the following month.
- 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.
- August overhead amounted to P83,200, including P5,900 of depreciation.
- 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.
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