Stately Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments:
a. Stately Corporation pays for 55% of its direct materials purchases in the month of purchase and the remainder the following month. Last month’s direct material purchases were $ 79,000, while the company anticipates $ 88,000 of direct material purchases next month.
b. Direct labor for the upcoming month is budgeted to be $ 35,000 and will be paid at the end of the upcoming month.
c. Manufacturing overhead is estimated to be 140% of direct labor cost each month and is paid in the month in which it is incurred. This monthly estimate includes $ 11,000 of depreciation on the plant and equipment.
d. Monthly operating expenses for next month are expected to be $ 46,000, which includes $ 2,000 of depreciation on office equipment and $ 1,400 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. How much cash will be paid out next month?

  • CreatedAugust 27, 2014
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