Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fein Company provided the follewing information relating to cash payments: a. Fein purchased direct materiais on account in the following amounts: b. Fein pays 20%

image text in transcribed
image text in transcribed
Fein Company provided the follewing information relating to cash payments: a. Fein purchased direct materiais on account in the following amounts: b. Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month. c. In July, direct labor cost was $32,300. August direct labor cost was $35,400. The company finds that typtcally 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month. d. August overhead amounted to $71,200, including $6,350 of depreciation. e. Fein had taken out a 4-month loan of $15,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year, The loan and all interest were repaid on August 31. (Note: Use whole months to compute interest payment.) Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers. Fein Company Schedule of Cash Payments For August August Payments on accounts payable: From July purchases From August purchases 4% Direct labor payments: From July From August x % Overhead Loan repayment Cash payments

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

10th edition

1260481956, 1260310175, 978-1260481952

More Books

Students also viewed these Accounting questions

Question

U11 Informing Industry: Publicizing Contract Actions 317

Answered: 1 week ago