ash Payments Schedule Fein Company provided the following information relating to cash payments: Fein purchased direct materials on account in the following amounts: June $68,000 July 77,000 August 73,000 Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month. In July, direct labor cost was $35,800. August direct labor cost was $35,400. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month. August overhead amounted to $77,200, including $6,350 of depreciation. Fein had taken out a 4-month loan of $24,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year. The loan and all interest were repaid on August 31. (Note: Use whole months to compute interest payment.) Required: Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers.
ash Payments Schedule Fein Company provided the following information relating to cash payments: Fein purchased direct materials on account in the following amounts: June $68,000 July 77,000 August 73,000 Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month. In July, direct labor cost was $35,800. August direct labor cost was $35,400. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month. August overhead amounted to $77,200, including $6,350 of depreciation. Fein had taken out a 4-month loan of $24,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year. The loan and all interest were repaid on August 31. (Note: Use whole months to compute interest payment.) Required: Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers.
ash Payments Schedule Fein Company provided the following information relating to cash payments: Fein purchased direct materials on account in the following amounts: June $68,000 July 77,000 August 73,000 Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month. In July, direct labor cost was $35,800. August direct labor cost was $35,400. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month. August overhead amounted to $77,200, including $6,350 of depreciation. Fein had taken out a 4-month loan of $24,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year. The loan and all interest were repaid on August 31. (Note: Use whole months to compute interest payment.) Required: Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers.
Fein Company provided the following information relating to cash payments:
Fein purchased direct materials on account in the following amounts:
June
$68,000
July
77,000
August
73,000
Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month.
In July, direct labor cost was $35,800. August direct labor cost was $35,400. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month.
August overhead amounted to $77,200, including $6,350 of depreciation.
Fein had taken out a 4-month loan of $24,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year. The loan and all interest were repaid on August 31. (Note: Use whole months to compute interest payment.)
Required:
Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers.
Transcribed Image Text:Fein Company
Schedule of Cash Payments
For August
August
Payments on accounts payable:
From July purchases
%
From August purchases
%
Direct labor payments:
From July
$4
%
From August
%
Overhead
Loan repayment
Cash payments
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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