The cost of production includes $1.20 for direct labor which is paid the month that it is
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The cost of production includes $1.20 for direct labor which is paid the month that it is incurred and $0.95 for direct materials which are purchased JIT (no inventory) and paid for 60 days after purchase. Variable overhead is $0.50 per unit and incurred with production and paid 30 days after they are incurred. Fixed overhead is $18,500 per month and paid as incurred.
Month Units Selling Price
March 30,000 $5.20
April 80,000 $5,20
May 80,000 $5.60
June 40,000 $5.60
1. Prepare a cash disbursement budget for June for production.
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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