Fein Company provided the following information relating to cash payments: Fein purchased direct materials on account in
Question:
Fein Company provided the following information relating to cash payments:
Fein purchased direct materials on account in the following amounts:
June | $68,000 | | |
July | 77,000 | | |
August | 73,000 | | |
Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month.
In July, direct labor cost was $33,800. August direct labor cost was $35,400. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month.
August overhead amounted to $77,200, including $6,350 of depreciation.
Fein had taken out a four-month loan of $23,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year. The loan and all interest were repaid on August 31.
Required:
Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers.
Cornerstones of Managerial Accounting
ISBN: 978-1305103962
6th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger