Question

:3 Question Help S9-12 (similar to) Stately Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: (Click the icon to view the data.) How much cash will be paid out next month? * More Info Stately Corporation Cash Payments Budget Cash payments for direct materials: 55% of last month's purchases 45% of next month's purchases Cash payments for direct labor Cash payments for manufacturing overhead Cash payments for operating expenses a. Stately Corporation pays for 45% of its direct materials purchases in the month of purchase and the remainder the following month. Last month's direct material purchases were $71,000, while the company anticipates $87,000 of direct material purchases next month. b. Direct labor for the upcoming month is budgeted to be $34,000 and will be paid at the end of the upcoming month. c. Manufacturing overhead is estimated to be 130% of direct labor cost each month and is paid in the month in which it is incurred. This monthly estimate includes $15,000 of depreciation on the plant and equipment. d. Monthly operating expenses for next month are expected to be $45,000, which includes $2,300 of depreciation on office equipment and $1,100 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred. e. Stately Corporation will be making an estimated tax payment of $7,600 next month. Cash payment for taxes Total cash payments Print Done Enter any number in the edit fields and then click Check Answer.

Answer 1

Cash payment budget

Cash payment for direct material
55% of last month's purchase (71000*55%)	39050
45% of next month's purchase (87000*45%)	39150
Cash payment for direct labor	34000
Cash payment for manufacturing overhead (34000*1.3-15000)	29200
Cash payment for operating expense (45000-2300-1100)	41600
Cash payment for taxes	7600
Total Cash payment	190600