Homework: Chapter 9 Homework Score: 0 of 15 pls E9-29A (book/static) 8 af 9 (7 c

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Homework: Chapter 9 Homework Score: 0 of 15 pls E9-29A (book/static) 8 af 9 (7 complete) HW Score: 62.05%, 62.05 of 100 pts Question Help The Robbins Company irs preparing its cash payments budget The tolkowing items relats to cash payments the company amcipates making during (Click the con to view the cash payment information ) Prepare a cash payments budget for April, May and June and tor the quarter (f a box is not usesdt in the table keave the box empty, do not enter 8 28 More info purchases in the month of purchase and the a The company pays for 45% of its dret materals remander the following month. The company's direct matensl purchases for March are antcpatod to be as follows trough June The Robbins Company Cash Payments Budget For the Months of April through June April May May S 118,000 5 132 000 S 122.000 5 147,000 b. Direct labor is pard in the morth in which it is incurred Dieect labor for each month of the second Cash payments for direct matenals quarler is buadgefed as tolows 45% of current month purchases 55% of last month's purchases May April 5 60 000 70.00085 000 Manutaturing overhead is estmated to be 140% of dred labor ast each month Ths mony eshmale inclades $36,000 af depreciaion on the plant and eqipment All manufactuning overhoad (exduding deprecistion) s paixd in the month in which t is incured d. Monthly operating expenses for March through June are progected to be as tollows March April May S 14,000 87,000 $ 84 000 92000 Monthly operaing expenses are paid in the month after they are ncured Mornthy openatng expenses include $8.000 for menthly depreciation on admnistative offices and equipment an 52 800 for bad debt expense e. The compeny plans to pay $7,000 (cash) for a new server in May f. The company must make an sstmaled tax payment of $14,000 on June t5 Enter any number in the edil flelds and then click Check Answer Print Done Clear Al O Type here to search

Explanation / Answer

Note: Depreciation is a non-cash expense. It does not lead to outflow of cash. Hence, not deducted

Manufacturing Overheads are taken as 140% of labour cost less depreciation as specified

April May June Quarter 45% of Current month Purchases 59,400 54,900 66,150 180,450 55% of last month's purchases 64,900 72,600 67,100 204,600 Direct Labour 60,000 70,000 85,000 215,000 Manufacturing Overheads 48,000 62,000 83,000 193,000 Operating Expenses 63,200 76,800 73,200 213,200 New Server 7000 7000 Tax 14,000 14000 Cash Payments 295,500 343,300 388,450 1027,250

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