Explanation Company S Cash budget Cash payment for manufacturing Overhead Last month Next Month Cash payment for direct material Purchases $43,450 $91,850 Cash payment for direct labor $35,000 $35,000 Cash payment for manufacturing overhead $38,000 $38,000 Cash payment for operating expenses - $42,600 Cash payment for income tax - $7,600 Total cash payment - $215,050 Table (1) Calculation of payments: Step 1:Calculate Direct Material payment: Direct material purchases for the last month is $79,000 and next month is $88,000. 55% payment in the current month and remaining Next month: Last month payment = $ 79000 × 55 % = $ 43 , 450 Next month payment = Last months remaining 55% + next months payment 55% = $79,000 × 55%+ $88,000 × 55% = $43,450 + $48,400 = $91,850 Step 2:Calculate direct labor payment. Labor payment is for the upcoming month is $35,000 and it is paid at the end of each month. Therefore, last months direct labor payment is $35,000 and next months payment is $35,000. Step 3:Calculate manufacturing overhead payment. Each month is 140% of direct labor cost is$49,000 So last month cost is$49,000 Next Month cost is$49,000 $11,000 depreciation of plant and equipment is to be deducted from estimated manufacturing overhead

4th Edition

ISBN: 9780133428377

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

See similar textbooks

Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…

Videos

Question

Chapter 9, Problem 9.11SE

To determine

The amount of cash to be paid in the next month.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 9, Problem 9.10SE

Chapter 9, Problem 9.12SE

Students have asked these similar questions

FOOD BLON NVASIONTH a) b) A-27 Give journal entries, ledger accounts and Balance Sheets under the following methods of treatment of goodwill:- If goodwill is raised and written off. If goodwill is brought in cash and withdrawn from the business. (B.Com., Osm) (Ans. Balance Sheet total (under both methods of treatment 85,000) 16. C and D carrying on business in partnership and sharing profits 5/8 & 3/8th require a partner when their Balance Sheet stood as follows. Balance Sheet Liabilities Assets Creditors 10,000 Cash Reserve Fund 20,000 Debtors Capitals: Stock C 40,000 Investment D 20,000 60,000 Plant 90,000 2,400 20,000 10,000 7,600 50,000 90,000 They admit E into partnership giving him 1/8th share on the following terms: Stock to be depreciated by 20 per cent, a provision of 5 percent on debtors is to be made for doubtful debts, investments are to be brought in the new firm at an agreed value of 6,000 and Plant to be appreciated by 20 per cent. E brings in 16,000 as his share of…

General Accounting Question solution please fast

Financial Accounting

Chapter 9 Solutions

Managerial Accounting (4th Edition)

Ch. 9 - Prob. 1QC Ch. 9 - Prob. 2QC Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education

FINANCIAL ACCOUNTING

Accounting

ISBN:9781259964947

Author:Libby

Publisher:MCG

Accounting

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:Cengage Learning,

Accounting Information Systems

Accounting

ISBN:9781337619202

Author:Hall, James A.

Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...

Accounting

ISBN:9780134475585

Author:Srikant M. Datar, Madhav V. Rajan

Publisher:PEARSON

Intermediate Accounting

Accounting

ISBN:9781259722660

Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:9781259726705

Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:McGraw-Hill Education

SEE MORE TEXTBOOKS

Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY