Answered step by step
Verified Expert Solution
Link Copied!

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:

  1. Fein purchased direct materials on account in the following amounts:
June $68,000
July 77,000
August 73,000
  1. Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month.
  2. In July, direct labor cost was $32,300. August direct labor cost was $35,400. 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.
  3. August overhead amounted to $76,200, including $6,350 of depreciation.
  4. Fein had taken out a 4-month loan of $24,000 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.)

Required:

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
$fill in the blank 1 fill in the blank 2 % $fill in the blank 3
From August purchases
$fill in the blank 4 fill in the blank 5 % fill in the blank 6
Direct labor payments:
From July
$fill in the blank 7 fill in the blank 8 % fill in the blank 9
From August
$fill in the blank 10 fill in the blank 11 % fill in the blank 12
Overhead fill in the blank 13
Loan repayment fill in the blank 14
Cash payments $fill in the blank 15

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

Step: 3

blur-text-image

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

Beyond Compliance Design Of A Quality System Tools And Templates For Integrating Auditing Perspectives

Authors: Janet Bautista Smith, Robert Alvarez

1st Edition

1951058232, 978-1951058234

More Books

Students also viewed these Accounting questions

Question

P ( 1.23 Answered: 1 week ago

Answered: 1 week ago

Question

4 How can you create a better online image for yourself?

Answered: 1 week ago