Question

The

MonetteMonette

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.

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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 Monette 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 payment info:

The company pays for 5050​% 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 $110,000 $133,000 $124,000 $141,000
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: April May June $52,000 $62,000 $77,000
c.	Manufacturing overhead is estimated to be 160160​% of direct labor cost each month. This monthly estimate includes $ 34 comma 000$34,000 of depreciation on the plant and equipment. All manufacturing 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​ follows: March April May June $73,000 $87,000 $82,000 $94,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $ 14 comma 000$14,000 for monthly depreciation on administrative offices and​ equipment, and $ 2 comma 800$2,800 for bad debt expense.
e.	The company plans to pay $ 2 comma 000$2,000 ​(cash) for a new server in May.
f.	The company must make an estimated tax payment of $ 12 comma 000$12,000 on June 1515.

Answer 1

Solution

fx A C D E G solution 1 Cash Payment Budget: 7 May April june Quarter Cash Payment for Direct materials: 50% of current month purchase (133000*.5) 55000 (110000.5) 62000 (124000*.5) 70500 (141000.5) 62000 (124000.5) 66500 199000 5 50% of last month purchase 66500 (133000*.5) 183500 Cash payments for Direct labor Cash payments for manufacturing 77000 52000 62000 191000 7 overhead[(160*direct labour)-34000] (1,6 77000-34000) (1.6 52000-34000) 65200 (1.6 62000-34000) 89200 203600 49200 (73000-14000-2800 70200 (87000-14000-2800 65200 (82000-14000-2800 191600 cash payments for operating expenses 56200 Cash payments for new server 2000 2000 10 12000 cash payments for taxes 12000 11 4E 05 Total cash payments 278900 3E+05 982700 17 13 14 15 16 17 18 19 NMm t n D