Prepare a cash budget for January and February. Payments for direct materials: January $43,000, February $64,500. Direct
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Question:
Prepare a cash budget for January and February.
- Payments for direct materials: January $43,000, February $64,500.
- Direct labor: January $25,800, February $38,700. Wages are paid in the month they are incurred.
- Manufacturing overhead: January $18,060, February $21,500. These costs include depreciation of $1,290 per month. All other overhead costs are paid as incurred.
- Selling and administrative expenses: January $12,900, February $17,200. These costs are exclusive of depreciation. They are paid as incurred.
- Collections from customers: January $73,100, February $129,000.
- Sales of marketable securities in January are expected to realize $10,320 in cash.
- Concord Company has a line of credit at a local bank that enables it to borrow up to $21,500.
- The company wants to maintain a minimum monthly cash balance of $17,200.
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