Question

The Sweeney 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. i More Info The Sweeney Company Cash Payments Budget For the Months of April through June April May Cash payments for direct materials: 45% of current month purchases 55% of last month's purchases June Quarter 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 $ 113,000 $ 136,000 $ 122,000 $ 149,000 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 $ 58,000 $ 68,000 $ 83,000 c. Manufacturing overhead is estimated to be 150% of direct labor cost each month. This monthly estimate includes $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 $ 75,000 $ 2,000 $ 87,000 $ 95,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $14,000 for monthly depreciation on administrative offices and equipment and $3,300 for bad debt expense. e. The company plans to pay $6,000 (cash) for a new server in May. f. The company must make an estimated tax payment of $13,000 on June 15. Enter any number in the edit fields and then click Check Answer parts b remaining Print Done

Answer 1

Sweeney Company I Cash for the payments leudget month through Apsil to June April May June Our (April + may & Jusce - Cash payment of Diuct material: ta) 45% of Current month Pur. 18315o 20yosa 61200 136000x451) 62150 113000 x ] 54900 67050 ('22000x453] [149600x45] 94800 67100 [36000x551] [127.000X55] (6) ssies last month's pl ' - 2 Cash payment of Direct laber 209000 58000 68000 83000 21150 68000 Goso - 53000 3. Manifesturicy ok Paid in cast 50) - 3 ilon: 83000 x 15 40007 63000 x1587 34000 58000X1501 - 34000 Teprication: it is a non cauthenponia 4 64700 operating emp 69700 193100 bad debts all 58700 76000 - 14000-3330 22000-4000 -3300 37000 - 14000 .23,10 also non compen Good e വലം 1 clu 6ooo 13000 Tane payment 13000 7 Total payments $293050 $336400 $390350 1019800