= Homework: Chapter 9 Question 9, E9-30A (sim... HW Score: 4.17%, 0.5 of 12 points O Points: 0 of 1 O Save KW Corporation is preparing its cash payments budget. The following items relate to cash payments that KW Corporation anticipates making during the second quarter of the upcoming year. (Click the icon to view the cash payment information.) Requirement Prepare a cash payments budget for April, May, and June, and for the quarter. - X Cash payment information (Leave any unused cells blank.) KW Corporation a. KW Corporation pays for 50% of its direct materials purchases in the month of purchase and the Cash Payments Budget remainder the following month. KW Corporation's direct material purchases for March through June are anticipated to be as follows: For the Months of April through June March April May June April May June Quarter $ 115,000 $ 135,000 $ 120,000 $ 148,000 Cash payments for direct materials: Current month's purchases b. Direct labour is paid in the month in which it is incurred. Direct labour for each month of the second quarter is budgeted as follows: Prior month's purchases April May June Cash payments for direct labour $ 54,000 $ 64.000 $ 84,000 Cash payments for manufacturing overhead c. Manufacturing overhead is estimated to be 130% of direct labour cost each month. This monthly estimate includes $34.000 of depreciation on the plant and equipment. All manufacturing Cash payments for operating expenses overhead (excluding depreciation) is paid in the month in which it is incurred. Cash payments for new server d. Monthly operating expenses for March through June are projected to be as follows: March Cash payment for taxes April May June $ 77,000 $ 89,000 $ 87,000 $ 98.000 Total cash payments Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $8,000 for monthly depreciation on administrative offices and equipment, and $3,500 for bad debt expense. e. kW Corporation plans to pay $7,000 (cash) for a new server in May. f. KW Corporation must make an estimated tax payment of $15,500 on June 15. Print Done