Question
Moorcroft Companys budgeted sales and direct materials purchases are as follows: Budgeted Sales Budgeted D.M. Purchases April $ 291,000 $ 43,000 May 295,000 50,000 June
Moorcroft Companys budgeted sales and direct materials purchases are as follows:
Budgeted Sales Budgeted D.M. Purchases
April $ 291,000 $ 43,000
May 295,000 50,000
June 354,000 63,000
Moorcrofts sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, 50% in the month following sale, and 26% in the second month following sale; 4% are uncollectible. Moorcrofts purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month following the purchase and 60% in the second month following the purchase.
Prepare a schedule of expected payments for direct materials for June.
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