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E9-29A (similar to) The Monachino Compary i prepaing ts cash payments busget The

ID: 2575665 • Letter: E

Question

E9-29A (similar to) The Monachino Compary i prepaing ts cash payments busget Theto cath payments the company aricipates making duing the second quarter afthe upceoming year @Click the icon to view the cash payment indormation.) Prepare a cash payments budget for Apni, May, and June and for the quartec (f a borx is not used in the tabie leave the box empty, do not enter a zero) The Monachino Company Cash Payments Budget For the Months of April through June Quarter Cash payments for direct materials 50% of current month purchases 50% of

Explanation / Answer

Solution:

Cash Payment Budget

April

May

June

Quarter

Cash payments for direct materials

50% of current month purchases

$67,500

(April 135000/2)

$60,500

(May 121000/2)

$72,500

(June 145000/2)

50% of last month's purchases

$56,500

(March 113000/2)

$67,500

(April 135000/2)

$60,500

(May 121000/2)

Total cash disbursements for materials

$124,000

$128,000

$133,000

$385,000

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Cash Payment Budget

April

May

June

Quarter

Cash payments for direct materials

50% of current month purchases

$67,500

(April 135000/2)

$60,500

(May 121000/2)

$72,500

(June 145000/2)

50% of last month's purchases

$56,500

(March 113000/2)

$67,500

(April 135000/2)

$60,500

(May 121000/2)

Total cash disbursements for materials

$124,000

$128,000

$133,000

$385,000