DB Corporation is preparing its cash payments budget. The following items relate to cash payments that...

 

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DB Corporation is preparing its cash payments budget. The following items relate to cash payments that DB Corporation anticipates making during the second quarter of the upcoming year. 1 (Click the icon to view the cash payment information.) O More Info Requirement 1. Prepare a cash payments budget for April, May, and June and for the quarter. (Leave any unused cells blank.) a. DB Corporation pays for 50% of its direct materials purchases in the month of purchase and the remainder the following month. DB Corporation's direct material purchases for March through June are anticipated to be as follows: DB Corporation Cash Payments Budget March April May June For the Months of April through June $ 128.000 $ 112,000 b. Direct labour is paid in the month in which it is incurred. Direct labour for each month of the second quarter is budgeted as follows: 135,000 145,000 April May June Quarter Cash payments for direct materlals: Current month's purchases Аpril May June Prior month's purchases 24 50,000 24 $ 60,000 $ 75,000 c. Manufacturing overhead is estimated to be 150% of direct labour cost each month. This monthly estimate includes $35,000 of depreciation on the plant and equipment. All manufacturing overhead (excluding depreciation) is paid in the month in which it is incurred. Cash payments for direct labour Cash payments for manufacturing overhead Cash payments for operating expenses d. Monthly operating expenses for March through June are projected to be as follows: Cash payments for new server March April May June 87,000 $ 84,000 $ 93,000 Cash payment for taxes 72,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $12,000 for monthly depreciation on administrative offices and equipment, and $3,000 for bad debt expense. Total cash payments e. DB Corporation plans to pay $5,000 (cash) for a new server in May. f. DB Corporation must make an estimated tax payment of $12,500 on June 15. Enter any number in the edit fields and then click Check Answer. DB Corporation is preparing its cash payments budget. The following items relate to cash payments that DB Corporation anticipates making during the second quarter of the upcoming year. 1 (Click the icon to view the cash payment information.) O More Info Requirement 1. Prepare a cash payments budget for April, May, and June and for the quarter. (Leave any unused cells blank.) a. DB Corporation pays for 50% of its direct materials purchases in the month of purchase and the remainder the following month. DB Corporation's direct material purchases for March through June are anticipated to be as follows: DB Corporation Cash Payments Budget March April May June For the Months of April through June $ 128.000 $ 112,000 b. Direct labour is paid in the month in which it is incurred. Direct labour for each month of the second quarter is budgeted as follows: 135,000 145,000 April May June Quarter Cash payments for direct materlals: Current month's purchases Аpril May June Prior month's purchases 24 50,000 24 $ 60,000 $ 75,000 c. Manufacturing overhead is estimated to be 150% of direct labour cost each month. This monthly estimate includes $35,000 of depreciation on the plant and equipment. All manufacturing overhead (excluding depreciation) is paid in the month in which it is incurred. Cash payments for direct labour Cash payments for manufacturing overhead Cash payments for operating expenses d. Monthly operating expenses for March through June are projected to be as follows: Cash payments for new server March April May June 87,000 $ 84,000 $ 93,000 Cash payment for taxes 72,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $12,000 for monthly depreciation on administrative offices and equipment, and $3,000 for bad debt expense. Total cash payments e. DB Corporation plans to pay $5,000 (cash) for a new server in May. f. DB Corporation must make an estimated tax payment of $12,500 on June 15. Enter any number in the edit fields and then click Check Answer.