purchases raw materials on account. Budgeted purchase amounts are: April, $90,00

Question

purchases raw materials on account. Budgeted purchase amounts are: April, $90,000; May, $120,000; and June, $130,000. Payments are made as follows: 75% in the month of purch payable is $32,000. ase and 25% in the month after purchase. The March 31 balance of accounts Prepare a schedule of budgeted cash payments for April, May, and June April May June Current month purchases Ending accounts payable | 75% | 25% Total purchases o S 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

April May June Current month purhase 75% 67500 90000 97500 ( April=90000*0.75, May=120000*0.75, June=130000*0.75) Ending accounts payable 25% 22500 30000 32500 ( April=90000*0.25, May=120000*0.25, June=130000*0.25) Total purchase 90000 120000 130000 Zisk Co. Schedule of cash payment For April, May, June April May June Cash payments for: Current month purchase 67500 90000 97500 Prior month purchase 32000 22500 30000 Budgeted cash payment for material 99500 112500 127500

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