Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please Solve! The Monachino Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second
Please Solve!
The Monachino Company 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. (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; i More Info The Monachino Company Cash Payments Budget a. The company pays for 50% of its direct materials purchases in the month of purchase and the For the Months of April through June remainder the following month. The company's direct material purchases for March through June April May June Quarter are anticipated to be as follows: Cash payments for direct materials: March April May June 50% of current month purchases $ 111,000 $ 137,000 $ 127,000 $ 143,000 50% of last month's purchases 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 $ 46,000 $ 56,000 $ 71,000 c. Manufacturing overhead is estimated to be 160% of direct labor cost each month. This monthly estimate includes $34,000 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 June $ 74,000 $ 84,000 $ 86,000 $ 97,000 Enter any number in the edit fields and then click Check Answer. parts remaining 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 $3,400 for bad debt expense. e. The company plans to pay $2,000 (cash) for a new server in May. f. The company must make an estimated tax payment of $14.000 on June 15. Clear AllStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started