Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fein Company provided the following information relating to cash payments. Fein purchased direct materials on account in the following amounts: June $68,000 July 77,000 August
Fein Company provided the following information relating to cash payments. Fein purchased direct materials on account in the following amounts:
June
$68,000
July
77,000
August
73,000
- Fein pays 20 percent of accounts payable in the month of purchase and the remaining 80 percent in the following month.
- In July, direct labour cost was $32,300. August direct labour cost was $35,400. The company finds that typically 90 percent of direct labour cost is paid in cash during the month, with the remainder paid in the following month.
- August overhead amounted to $71,200, including $6,350 of depreciation.
- Fein had taken out a loan of $15,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9 percent per year. The loan and all interest was repaid on August 31. (Note:Use whole months to compute interest payment.)
Payments on accounts payable for July are $
______.
Payments on accounts payable for August are $
______.
Direct labour payments from July are $
______.
Direct labour payments from August are $
______.
Overhead payment is $
______.
Loan repyament is $
______.
Total cash payments for August are $
______.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started