Zisk Co. purchases direct materials on credit. Budgeted purchases are April, $80,000; May, $110,000; and June, $120,000.

Question:

Zisk Co. purchases direct materials on credit. Budgeted purchases are April, $80,000; May, $110,000; and June, $120,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $70,000. Prepare a schedule of cash payments for direct materials for April, May, and June.