Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: Apri

Question

Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $94,000; May, $124,000; and June, $134,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $36,000.

Prepare a schedule of budgeted cash payments for April, May, and June.

April May June Current month purchases 70% Ending accounts payable 30% Total purchases Zisk Co. Schedule of Cash Payments For April, May, and June April May June Cash payments for: Current month purchases Prior month purchases Budgeted cash payments for materials

Explanation / Answer

schedule of budgeted payments for april may and june:

zisk co

schedule of cash payments

April may june current month purchases 70% 65,800 86,800 93,800 ending accounts payable 30% 28.200 37,200 40,200 total purchases 94,000 124,000 134,000

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