Zisk Company purchases direct materials on credit. Budgeted purchases are April, $87,000; May, $117,000; and June, $127,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $77,000. Prepare a schedule of cash payments for direct materials for April, May, and June.

Zisk Company purchases direct materials on credit. Budgeted purchases are April, $87,000; May, $117,000; and June, $127,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $77,000. Prepare a schedule of cash payments for direct materials for April, May, and June.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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