The LaChut Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year. View the cash payment information. Requirement Prepare a cash payments budget for April, May, and June and for the quarter. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) The LaChut Company Cash Payments Budget For the Months of April through June April May Cash payments for direct materials: 50% of current month purchases 50% of last month's purchases Cash payments for direct labor Cash payments for manufacturing overhead Cash payments for operating expenses Cash payments for new server Cash payment for taxes Total cash payments June Quarter Cash payment information a. The company pays for 50% of its direct materials purchases in the month of purchase and the remainder the following month. The company's direct material purchases for March through June are anticipated to be as follows: March $ 114,000 $ April 134,000 May June $ 124,000 $ 146,000 b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budgeted as follows: April May June $ 50,000 $ 60,000 $ 75,000 c. Manufacturing overhead is estimated to be 160% of direct labor 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. d. Monthly operating expenses for March through June are projected to be as follows: March $ 73,000 April $ 86,000 May June $ 84,000 $ 92,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $11,000 for monthly depreciation on administrative offices and equipment, and $3,100 for bad debt expense. e. The company plans to pay $5,000 (cash) for a new server in May. f. The company must make an estimated tax payment of $12,000 on June 15. Print Done - ☑
The LaChut Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year. View the cash payment information. Requirement Prepare a cash payments budget for April, May, and June and for the quarter. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) The LaChut Company Cash Payments Budget For the Months of April through June April May Cash payments for direct materials: 50% of current month purchases 50% of last month's purchases Cash payments for direct labor Cash payments for manufacturing overhead Cash payments for operating expenses Cash payments for new server Cash payment for taxes Total cash payments June Quarter Cash payment information a. The company pays for 50% of its direct materials purchases in the month of purchase and the remainder the following month. The company's direct material purchases for March through June are anticipated to be as follows: March $ 114,000 $ April 134,000 May June $ 124,000 $ 146,000 b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budgeted as follows: April May June $ 50,000 $ 60,000 $ 75,000 c. Manufacturing overhead is estimated to be 160% of direct labor 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. d. Monthly operating expenses for March through June are projected to be as follows: March $ 73,000 April $ 86,000 May June $ 84,000 $ 92,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $11,000 for monthly depreciation on administrative offices and equipment, and $3,100 for bad debt expense. e. The company plans to pay $5,000 (cash) for a new server in May. f. The company must make an estimated tax payment of $12,000 on June 15. Print Done - ☑
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 5P
Related questions
Question
Transcribed Image Text:The LaChut Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year.
View the cash payment information.
Requirement
Prepare a cash payments budget for April, May, and June and for the quarter. (If an input field is not used in the table, leave the input field empty; do not enter a zero.)
The LaChut Company
Cash Payments Budget
For the Months of April through June
April
May
Cash payments for direct materials:
50% of current month purchases
50% of last month's purchases
Cash payments for direct labor
Cash payments for manufacturing overhead
Cash payments for operating expenses
Cash payments for new server
Cash payment for taxes
Total cash payments
June
Quarter
Cash payment information
a. The company pays for 50% of its direct materials purchases in the month of purchase and the
remainder the following month. The company's direct material purchases for March through June
are anticipated to be as follows:
March
$
114,000
$
April
134,000
May
June
$
124,000 $
146,000
b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second
quarter is budgeted as follows:
April
May
June
$ 50,000 $
60,000 $
75,000
c. Manufacturing overhead is estimated to be 160% of direct labor 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.
d. Monthly operating expenses for March through June are projected to be as follows:
March
$
73,000
April
$ 86,000
May
June
$
84,000 $
92,000
Monthly operating expenses are paid in the month after they are incurred. Monthly operating
expenses include $11,000 for monthly depreciation on administrative offices and equipment, and
$3,100 for bad debt expense.
e. The company plans to pay $5,000 (cash) for a new server in May.
f. The company must make an estimated tax payment of $12,000 on June 15.
Print
Done
-
☑
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