Jiffy Company has budgeted purchases of merchandise inventory of $454,000 in January and $533,000 in February. Assume Jiffy pays for inventory purchases 70% in the month of purchase and 30% in the month after purchase. The Accounts Payable balance on December 31 is $97,425. Prepare a schedule of cash payments for purchases for January and February, including the calculation for the Accounts Payable balance on February 28. Begin by computing the total cash payments for direct materials for January and February. Then, compute the Accounts Payable balance at February 28 (Round all amounts you enter into the budget to the nearest whole dollar. If an input field is not used in the table leave the input field empty, do not enter a zero.) Cash Payments Total merchandise inventory purchases Cash Payments January January February February

Jiffy Company has budgeted purchases of merchandise inventory of $454,000 in January and $533,000 in February. Assume Jiffy pays for inventory purchases 70% in the month of purchase and 30% in the month after purchase. The Accounts Payable balance on December 31 is $97,425. Prepare a schedule of cash payments for purchases for January and February, including the calculation for the Accounts Payable balance on February 28. Begin by computing the total cash payments for direct materials for January and February. Then, compute the Accounts Payable balance at February 28 (Round all amounts you enter into the budget to the nearest whole dollar. If an input field is not used in the table leave the input field empty, do not enter a zero.) Cash Payments Total merchandise inventory purchases Cash Payments January January February February

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 17E

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