a. Surity Corporation pays for 55% of its direct materials purchases in the month of purchase...

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a. Surity Corporation pays for 55% of its direct materials purchases in the month of purchase and the remainder the following month. The current month's direct material purchases were $72,000, while Surity Corporation anticipates $87,000 of direct material purchases next month. b. Direct labour for the upcoming month is budgeted to be $38,000 and will be paid at the end of the upcoming month. c. Manutacturing overhead is estimated to be 150% of direct labour cost each month and is paid in the month in which it is incurred. This monthly estimate includes $10,000 of depreciation on the plant and equiprnent. d. Monthly operating expenses for next month are expected to be $44,000, which includes $2,200 of depreciation on office equipment and $1,500 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred. e. Surity Corporation will make an estimated tax payment of $7,400 next month. Sunity Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: B (Click the icon to view the data.) How much cash will be pad out next month? Surity Corporation Cash Payments Budget Cash payments for direct materials: Current month's purchases Next month's purchases Cash payments for direct labour Cash payments for manufacturing overhead Cash payments for operating expenses Cash payment for taxes Total cash payments a. Surity Corporation pays for 55% of its direct materials purchases in the month of purchase and the remainder the following month. The current month's direct material purchases were $72,000, while Surity Corporation anticipates $87,000 of direct material purchases next month. b. Direct labour for the upcoming month is budgeted to be $38,000 and will be paid at the end of the upcoming month. c. Manutacturing overhead is estimated to be 150% of direct labour cost each month and is paid in the month in which it is incurred. This monthly estimate includes $10,000 of depreciation on the plant and equiprnent. d. Monthly operating expenses for next month are expected to be $44,000, which includes $2,200 of depreciation on office equipment and $1,500 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred. e. Surity Corporation will make an estimated tax payment of $7,400 next month. Sunity Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: B (Click the icon to view the data.) How much cash will be pad out next month? Surity Corporation Cash Payments Budget Cash payments for direct materials: Current month's purchases Next month's purchases Cash payments for direct labour Cash payments for manufacturing overhead Cash payments for operating expenses Cash payment for taxes Total cash payments

Answer rating: 100% (QA)

Cash payment budget Cash payment for direct materials Amount 45 of la... View the full answer