Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Serenity Corporation Cash Payments Budget Cash payments for direct materials: Current month's purchases Next month's purchases Cash payments for direct labour Cash payments for manufacturing

image text in transcribed
image text in transcribed
Serenity Corporation Cash Payments Budget Cash payments for direct materials: Current month's purchases Next month's purchases Cash payments for direct labour Cash payments for manufacturing overhead Cash payments for operating expenses Cash payment for taxes Total cash payments a. Serenity Corporation pays for 45% of its direct materials purchases in the month of purchase and the remainder the following month. The current month's direct material purchases were $73,000, while Serenity Corporation anticipates $83,000 of direct material purchases next month. b. Direct labour for the upcoming month is budgeted to be $37,000 and will be paid at the end of the upcoming month. c. Manufacturing overhead is estimated to be 140% of direct labour cost each month and is paid in the month in which it is incurred. This monthly estimate includes $14,000 of depreciation on the plant and equipment. d. Monthly operating expenses for next month are expected to be $46,000, which includes $2,300 of depreciation on office equipment and $1,400 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred. e. Serenity Corporation will make an estimated tax payment of $7,400 next month

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Risk Based Auditing

Authors: Phil Griffiths

1st Edition

0566086522, 9780566086526

More Books

Students also viewed these Accounting questions

Question

Identify ways to increase your selfesteem.

Answered: 1 week ago