Maria Bockman, Bates & Hill Fabricators’ accounts payable
manager, has just received the company’s direct materials purchases
budget for the first quarter.
January |
February |
March |
Quarter |
|||||
---|---|---|---|---|---|---|---|---|
Budgeted purchase cost |
$18,361 | $36,768 | $32,459 | $87,588 |
The company makes all of its direct materials purchases on account.
Maria’s recent review of the company’s payment history revealed
that the company pays for 50% of its direct materials purchases in
the month of purchase and 50% in the month following purchase. The
company expects to have an accounts payable balance of $14,040 on
January 1, and this amount represents the remaining payables from
December’s direct materials purchases.
Prepare Concord & Hill’s cash payments budget for the coming
year. (Round answers to 0 decimal places, e.g. 5,275.
Enter answers in necessary fields only. Leave other fields blank.
Do not enter 0.)
Cash Payments Budget | |||||||
---|---|---|---|---|---|---|---|
January | February | March | Total Cash Payments | ||||
December A/P | $Enter a dollar amount Enter a dollar amount | $Enter a dollar amount Enter a dollar amount | $Enter a dollar amount Enter a dollar amount | $Enter a dollar amount Enter a dollar amount | |||
January purchases | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | |||
February purchases | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | |||
March purchases | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | |||
Total | $Enter a total amount Enter a total amount | $Enter a total amount Enter a total amount | $Enter a total amount Enter a total amount | $Enter a total amount Enter a total amount |
Prepare Concord & Hill’s cash payments budget for the first
quarter.
Accounts Payable balance | $Enter Accounts Payable balance in dollars Enter Accounts Payable balance in dollars |
January | February | March | Total Cash Payments | |
December A/P | 14040 | 14040 | ||
January purchases | 9181 | 9181 | 18362 | |
February purchases | 18384 | 18384 | 36768 | |
March purchases | 16230 | 16230 | ||
Total | 23221 | 27565 | 34614 | 85400 |
Accounts Payable balance | 16230 | =32459*50% |
Workings: | |||
January | February | March | |
January purchases | =18361*50% | =18361*50% | |
February purchases | =36768*50% | =36768*50% | |
March purchases | =32459*50% |
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