Question
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
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 3,500Step by Step Solution
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