Question

Carmen Company has the following projected costs for manufacturing and selling and administrative​ expenses:

January                                 February                                          March

Direct materials purchases                               $3,100                                                   $4,500                                        $4,400

Direct labor costs                                               2,600                                                   3,200                                            3,700

Depreciation on plant                                            700                                                     700                                             700

Utilities for plant                                                    560                                                    560                                                560

Property taxes on plant                                               150                                                   150                                             150

Depreciation on office                                               350                                                 350                                                    350

Utilities for office                                                        320                                                 320                                                     320

Property taxes on office                                               120                                             120                                                       120

Office salaries                                                      5,000                                                        5,000                                            5,000

All costs are paid in month incurred​ except: direct​ materials, which are paid in the month following the​ purchase; utilities, which are paid in the month after​ incurred; and property​ taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a zero balance on January 1.

Prepare a schedule of cash payments for Carmen for January​, February​, and March. Determine the balances in Prepaid Property​ Taxes, Accounts​ Payable, and Utilities Payable as of March 31.

​(If a box is not used in the table leave the box​ empty; do not enter a​ zero.)

Answer 1

	January	February	March	Total
Cash Payments
Direct material
Accounts Payable balance january 1
January-direct material purchased paid in february		3100		3100
February-direct material purchased paid in March			4500	4500
Total payments for direct material		3100	4500	7600
Direct labor	2600	3200	3700	9500
Total payments of direct labor	2600	3200	3700	9500
Manufacturing overhead
Utilities for plant		560	560	1120
Property tax on plant ( for 12 months)	1800			1800
Total payments for manufacturing overhead	1800	560	560	2920
Selling and administrative expenses
Utilities for office		320	320	640
property taxes on office ( for 12 months)	1440			1440
office salaries	5000	5000	5000	15000
total payments for selling and admin expenses	6440	5320	5320	17080
Total cash payments	10840	10840	21680	43360
Accounts balance mar 31
prepaid property tax	2430	(150+120)*9
accounts payable	4400
utilities payable	880	(560+320)