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Preparing a financial budget—schedule of cash payments Learning Objective 4 Mar. total cash pmts. $11,500
Marcel Company has the following projected costs for manufacturing and selling and administrative expenses:
January | February | March | |
Direct materials purchases | $3,100 | $ 3,500 | $ 4,800 |
Direct labor costs | 3,300 | 3,500 | 3,600 |
550 | 550 | 550 | |
Utilities for plant | 550 | 650 | 650 |
Property taxes on plant | 200 | 200 | 200 |
Depreciation on office | 550 | 550 | 550 |
Utilities for office | 250 | 250 | 250 |
Property taxes on office | 170 | 170 | 170 |
Office salaries | 3,500 | 3,500 | 3,500 |
All costs are paid in month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred, and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a zero balance on January 1. Prepare a schedule of cash payments for Marcel for January. February and March. Determine the balances in Prepaid Property Taxes, Accounts Payable, and Utilities Payable as of March 31.
Note: Exercises E22-26 and E22-27must be completed before attempting Exercise E22-28.
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