Question

A company has budgeted direct materials purchases of $320000 in July and $480000 in August. Past...

A company has budgeted direct materials purchases of $320000 in July and $480000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted:

Wages Expense $110000
Purchase of office equipment 68000
Selling and Administrative Expenses 45000
Depreciation Expense 32000


The budgeted cash disbursements for August are

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Payment for July (30%) $          96,000
Payment for Aug (30%) $        336,000
Wages Expense $        110,000
Purchase of office equipment $          68,000
Selling and Administrative Expenses $          45,000
Budgeted cash disbursements for August $        655,000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sheridan Company estimates its sales at 160000 units in the first quarter and that sales will...
Sheridan Company estimates its sales at 160000 units in the first quarter and that sales will increase by 10000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale Cash collections for the third quarter are budgeted at $5166000. $6237000. $3591000. $7182000. 2....
Sushi House has budgeted sales revenue as follows: June July August Credit Sales $85,000 $80,000 $72,000...
Sushi House has budgeted sales revenue as follows: June July August Credit Sales $85,000 $80,000 $72,000 Cash Sales 14,000 25,000 32,000 Total Sales $99,000 $105,000 $104,000 Past experience indicates that 70% of the credit sales will be collected in the month of sale and the remaining 30% will be collected in the following month. Purchases of inventory are all on credit and 60% is paid in the month of purchase and 40% in the month following purchase. Budgeted inventory purchases...
Redding Company has budgeted sales revenues as follows:                                  
Redding Company has budgeted sales revenues as follows:                                                                                     June                   July                 August    Credit sales                                                              $135,000            $145,000            $  90,000 Cash sales                                                                    90,000              255,000              195,000 Total sales                                                                $225,000            $400,000            $285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are: June                                       $300,000 July                                          250,000 August                                     105,000 Other cash disbursements budgeted:  (a) selling and administrative...
Cruises, Inc. has budgeted sales revenues as follows: June July August Credit Sales $135,000 $135,000 $90,000...
Cruises, Inc. has budgeted sales revenues as follows: June July August Credit Sales $135,000 $135,000 $90,000 Cash Sales 90,000 225,000 195,000 Total Sales $225,00 $380,000 $285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Cash disbursements were $421,000 for July and $250,500 for August. The company wishes to maintain a minimum cash balance of $50,000 at the end of each...
Corporation pays for 60% of its raw materials purchases in the month of purchase and 40%...
Corporation pays for 60% of its raw materials purchases in the month of purchase and 40% in the following month. If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050, then in August the total budgeted cash disbursements for raw materials purchases is closest to:
Company B is a merchandising Company. Estimated sales for July, August, and September will be $200,000,...
Company B is a merchandising Company. Estimated sales for July, August, and September will be $200,000, $190,000, and $210,000, respectively. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The average gross profit ration is 60%. The company pays for 40% of its merchandise purchase in the month of purchase and the remaining 60% in the month following the purchase. 1. How much is the budgeted merchandise purchase in August? 2. How much is the...
Hector Company reports the following:      July August September Sales $ 15,000 $ 23,000 $ 27,000...
Hector Company reports the following:      July August September Sales $ 15,000 $ 23,000 $ 27,000 Purchases 9,000 13,800 15,000 Payments for purchases are made in the month after purchase. Selling expenses are 16% of sales, administrative expenses are 11% of sales, and both are paid in the month of sale. Rent expense of $2,100 is paid monthly. Depreciation expense is $1,400 per month. Prepare a schedule of budgeted cash payments for August and September. HECTOR COMPANY Budgeted Cash Payments...
Wolfpack Company is a merchandising company that is preparing a budget for the month of July....
Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Wolfpack Company Balance Sheet June 30 Assets Cash $ 79,200 Accounts receivable 68,600 Inventory 40,200 Buildings and equipment, net of depreciation 213,000 Total assets $ 401,000 Liabilities and Stockholders’ Equity Accounts payable $ 56,000 Common stock 100,000 Retained earnings 245,000 Total liabilities and stockholders’ equity $ 401,000 Budgeting Assumptions: All sales are on account. Thirty percent of the...
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and...
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,900, 20,000, 22,000, and 23,000 units, respectively. All sales are on credit. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of...
Jones company has sales of $400,000 in July and $500,000 in August. It’s purchases are $250,000...
Jones company has sales of $400,000 in July and $500,000 in August. It’s purchases are $250,000 in July and $300,000 in August. Accounts payable at the beginning of July are $110,000. All sales are for cash. Payments for purchases are paid for half in the month of purchase and half in the following month. Expenses for each month are the following; rent $10,000; depreciation, $4,000; Utilities, $1,000; sales salaries, 10% of sales; administrative expenses, 5% of sales. Prepare a cash...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT