Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if correct ill leave a thumbs up! pls help The Kerwin Compary is preparing its cash payments budget. The following items relate to cash payments

if correct ill leave a thumbs up! pls help
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Kerwin Compary is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year. (1) (Click the icon to view the cash payment information.) Requirement Prepare a cash payments budget for April, May, and June and for the quarter. (If a box is not used in the table leave the box empty; do not enter a zero.) a. The company pays for 55% of its direct materials purchases in the month of purchase and the remainder the following month. The compary's direct material purchases for March through June are anticipated to be as follows: b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budjeted as follows: c. Manulacturing overhend is estimated to be 130% of direct labor cost each month. This monthly estimate includes $39,000 of depreciation on the plant and equipment. All manufacturing overhead (excluding depreciation) is paid in the month in which it is incurred. d. Monthly operating expenses for March through June are projected to be as follows: Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $10,000 for monthly depreciation on administrative offices and equipment, and $3,200 for bad debt expense. e. The company plans to pay $8,000 (cash) for a new server in May. The company must make an estimated tax payment of $12,500 on June 15 . The Kerwin Company Cash Payments Budget

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

Describe the characteristics of an oligopoly. ( 5 Points ) *

Answered: 1 week ago