Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Samson Company is preparing its cash payments budget The follovwing iterms relate to cash payments the company anticipates making during the second quarter of

image text in transcribed
image text in transcribed
image text in transcribed
The Samson Company is preparing its cash payments budget The follovwing iterms relate to cash payments the company anticipates making during the second quarter of the upooming year Cick the icon to view the cash payment information) 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 emply do not enter a zera) The Samson Company Cash Payments Budget For the Months of April through June April May June Quarter Cash payments for direct materials 45% of current month purchases 55% of last month's purchases e Samson Company is preparing its cash payments budget. The following items relate to cash payments the comp aking during the second quarter of the upcoming year. (Click the icon to view the cash payment information.) equirement repare a cash payments budget for April. May, and June and for the quarter. (If a box is not used in the table leave t ot enter a zero.) he last step is to total the cash payments for each month and for the quarter The Samson Company Cash Payments Budget For the Months of April through June April May June Quarter. Cash payments for direct materials: 50% of current month purchases 50% of last month's purchases Cash payments for direct labor Cash payments for manufacturing overhead Cash payments for operating expenses Cash payments for new server Cash payment for taxes Total cash payments Enter any number in the edit fields and then click Check Answer 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 111.000 S 138,000 125,000 S145.000 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 S 44.000 54.000 89,000 estimate includes $33.000 of depreciation on the plant and equipment. All manufacturing April May June c. Manufacturing overhead is estimated to be 1t of direct labor cost each month. This monthly 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 folows: March April May 83,000 S 88,000 96.000 June S 70.000 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 $2,700 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 $11,500 on June 15

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

Brinks Modern Internal Auditing A Common Body Of Knowledge

Authors: Robert R. Moeller

7th Edition

0470293039, 978-0470293034

More Books

Students also viewed these Accounting questions

Question

Identify the three major flows of communication in an organization.

Answered: 1 week ago