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Striker Corporation pays for 45% of its direct materials purchases in the month of purchase and he remainder the following month. Last month's direct material
Striker Corporation pays for 45% of its direct materials purchases in the month of purchase and he remainder the following month. Last month's direct material purchases were $74,000, while the company anticipates $85,000 of direct material purchases next month. Direct labor for the upcoming month is budgeted to be $34,000 and will be paid at the end of the upcoming month. Manufacturing overhead is estimated to be 140% of direct labor cost each month and is paid in the month in which it is incurred. This monthly estimate includes $17,000 of depreciation on the plant and equipment. Monthly operating expenses for next month are expected to be $42,000, which includes $2,500 of depreciation on office equipment and $1,800 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred Striker Corporation will be making an estimated tax payment of $7,600 next month. a. b. C. d. e
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