Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account:
April | $373,300 |
May | 411,800 |
June | 415,300 |
Wight typically pays 40% on account in the month of billing and 60% the next month.
Required:
1. How much cash is required for payments on
account in May?
$
2. How much cash is expected for payments on
account in June?
$
Answer:
Accounting payable schedule :
Month | Purchases | Payment = 40% in current month + 60%in next month | Cash required for payment |
April | $373300 | =$373300 * 40% | $149320 |
May | $411800 | =$373300 *60%+411800*40% | $388700 |
June | $415300 | =$411800 *60%+415300*40% | $413200 |
1.Cash required for payments on account in May - $388,700
2.Cash expected for payments on account in June - $413,200
Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget...
Preparing an Accounts Payable Schedule Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: April $374,400 May 411,200 June 416,000 Wight typically pays 20% on account in the month of billing and 80 % the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
Preparing an Accounts Payable Schedule Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: April $374,300 May 410,300 June 416,700 Wight typically pays 30% on account in the month of billing and 70% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
DED Homework eBook 4 Video Preparing an Accounts Payable Schedule 1A.ALGO 2AALGO 3A.ALGO Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account 2.ALGO A ALGO 5A ALGO 6AALGO April May June Wight typically pay Required: $373,800 410,900 416,800 s 20% on account in the month of billing and 80% the next month. How much cash is required for payments on account in May? 2. How much...
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $86,000; May, $116,000; and June, $126,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $28,000. Prepare a schedule of budgeted cash payments for April, May, and June. April May June Current month purchases 70% Ending accounts payable 30% Total purchases Zisk Co. Schedule of Cash Payments For April, May, and...
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May, $110,000; and June, $120,000. Payments are made as follows: 70 % in the month of purchase and 30 % in the month after purchase. The March 31 balance of accounts payable is $22,000 Prepare a schedule of budgeted cash payments for April, May, and June. April May June Current month purchases 70% Ending accounts payable 30 % Total purchases ZISK CO. Schedule of Cash Payments For...
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May, $110,000; and June, $120,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $22,000. Prepare a schedule of budgeted cash payments for April, May, and June. April May June 70% Current month purchases hases Ending accounts payable Total purchases 30% May June ZISK CO. Schedule of Cash Payments For...
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $99,000; May, $129,000; and June. $139,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $41,000. Prepare a schedule of budgeted cash payments for April, May, and June. April May June 70% Current month purchases Ending accounts payable Total purchases 30% $ 0 $ 0 $ 0 Zisk Co. Schedule of...
Shorstein Manufacturing Company purchases raw materials on account each month. Purchases are paid for according to the following schedule: 30% is paid in the month of the purchase 60% is paid in the month following the purchase 10% is paid in the second month following the purchase Budgeted purchases are as follows: March $75,000 April $90,000 May $85,000 How much will be reported for Accounts Payable for material purchases as of the end of May? $59,500 O $68,500 $87,000 $95,500...
Green Book Green Book International purchases raw materials on account. Budgeted purchase amounts are April, $93,000; May, $123,000; and June, $133,000. Payments are made as follows: 75% in the month of purchase and 25% in the month after purchase. The March 31 balance of accounts payable is $35,000. Prepare a schedule of budgeted cash payments for April, May, and June April May June Jun Current month purchases Ending accounts payable Total purchases 75% 25% 0 $ GREEN BOOK INTERNATIONAL May...
16. Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $98.000. May. $128.000, and June. $138,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $40,000 Prepare a schedule of budgeted cash payments for April May, and June points April Way 70% Current month purchases Ending accounts payable Total purchase Zisk Co Schedule of Cash Payments For April May, and...