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PLease help :) 1 More Info a. The company pays for 45% of its direct materials purchases in the month of purchase and the remainder
PLease help :)
1 More Info a. The company pays for 45% of its direct materials purchases in the month of purchase and the remainder the following month. The company's direct material purchases for March through June are anticipated to be as follows March April May June S 118,000 S 138,000 S121,000 144,000 b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budgeted as follows: April May June S 60,000 S 70,000 S 85,000 C. Manufacturing overhead is estimated to be 130% of direct labor cost each month. This monthly estimate includes $35,000 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: March April May 84,000 S87,000 S 92,000 June S 77,000 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 $2,900 for bad debt expense e. The company plans to pay $8,000 (cash) for a new server in May f. The company must make an estimated tax payment of $12,000 on June 15 Print DoneStep by Step Solution
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