E22-27 Preparing a financial budgetschedule of cash payments

Marcel Company has the following projected costs for manufacturing and selling and administrative expenses:

All costs are paid in month incurred except: direct materials, which are paid in the

month following the purchase; utilities, which are paid in the month after incurred;

and property taxes, which are prepaid for the year on January 2. The Accounts

Payable and Utilities Payable accounts have a zero balance on January 1. Prepare a

schedule of cash payments for Marcel for January, February, and March. Determine

the balances in Prepaid Property Taxes, Accounts Payable, and Utilities Payable as of

March 31.

Direct materials purchases Direct labor costs Depreciation on plant Utilities for plant Property taxes on plant Depreciation on office Utilities for office Property taxes on office Office salaries January February March 3,100 3,500 4,800 3,600 550 650 200 550 250 170 3,500 3,300 550 650 200 550 250 170 3,500 3,500 550 650 200 550 250 170 3,500