Question

The Sesnie Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year. Click the icon to view the cash payment information.) Requirement 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 empty; do not enter a zero.) The Sesnie Company Cash Payments Budget For the Months of April through June May June Quarter April Cash payments for direct materials: 50% of current month purchases 50% of last month's purchases

Answer 1

Budgeted Cash Payments
	April	May	June	Quarter
Current Month Purchases (50%)	$    67,000	$       64,000	$          73,000
Previous Month Purchases (50%)	$    55,000	$       67,000	$          64,000
Total Cash Payments for Purchases	$ 122,000	$    131,000	$        137,000	$       390,000
Direct Labor	$    56,000	$       66,000	$          81,000	$       203,000
Manufacturing Overhead	$    53,600	$       69,600	$          93,600	$       216,800
Operating Expenses	$    59,200	$       76,200	$          73,200	$       208,600
New Server		$         2,000		$            2,000
Tax Payment			$          12,500	$         12,500
Total Cash Payments	$ 290,800	$    344,800	$        397,300	$   1,032,900

Working

Budgeted Cash Payments
	April	May	June
Current Month Purchases (50%)	=134000*50%	=128000*50%	=146000*50%
Previous Month Purchases (50%)	=110000*50%	=134000*50%	=128000*50%
Total Cash Payments for Purchases
Direct Labor	56000	66000	81000
Manufacturing Overhead	=56000*160%-36000	=66000*160%-36000	=81000*160%-36000
Operating Expenses	=70000-8000-2800	=87000-8000-2800	=84000-8000-2800
New Server		2000
Tax Payment			12500