Marvel Company provided the following information relating to cash payments.

a.      Marvel purchased direct materials on account in the following amounts.

 

June	20,000
July	25,000
August	30,000

Marvel pays 25 percent of accounts payable in the month of purchase, and the remaining 75 percent in the following month.

b.      In July, direct labor cost $40,000. August direct labor cost was $50,000. The company finds that typically 90 percent of direct labor cost is paid in cash during the month, with the remainder paid in the following month.

c.       August overhead amounted to $70,000, including $5,500 of depreciation.

d.      Marvel took out a loan of $10,000 on May 1. Interest, due with payment of principal, accrued at the rate of 12 percent per year. The loan and all interest was repaid on August 31.

Required

Prepare a schedule of cash payments for Marvel Company for the month of August.

Answer rating: 100% (QA)

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