Zisk Company purchases direct materials on credit. Budgeted purchases are April, $90,000; May. $120,000; and June, $130,000. Cashpayments for purchases are: 75% in the month of purchase and 25% in the first month after purchase. Purchases for March are$80,000.Prepare a schedule of cash payments for direct materials for April, May, and June.ZISK COMPANYSchedule of Cash Payments for Direct MaterialsAprilMayMaterials purchasesCash payments for:Total cash paymentsJune

25% of March purchases are paid in the month of April.

Answered: Zisk Company purchases direct materials…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sunland Company's direct materials budget shows total cost of direct materials purchases for January $250000, February $270000 and March $330000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are $240000. $306000. $270000. $294000.
The Guitar Shoppe reports the following budgeted sales: August, $130,000; and September, $210,000. For its total sales, 30% are immediately collected in cash, 55% are credit sales and collected in the month following sale, and the remaining 15% are written off as uncollectible. Prepare a schedule of cash receipts from sales for September. THE GUITAR SHOPPE Schedule of Cash Receipts from Sales September Sales $210,000 Cash receipts from: Total cash receipts $0
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $56,600. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 71,200 $ 440,000 November $ 73,400 December $ 86,200 $ 576,000 $ 639,000 Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. c. Purchases of inventory will total $315,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $181,500, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $522,000…
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March Material purchases $ 13,120 $ 15,230 $ 12,050 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,800. The budgeted cash payments for materials in January are:
Required to prepare Cash budget for first three months of 2020, cash inflows with supporting computations, cash outflow with supporting computation, cash budget total with supporting computation.
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Raider-X Company budgets sales of 14,000 units for April and 16,000 units for May. Beginning inventory on April 1 is 5,600 units, and the company wants to have 40% of next month's unit sales in inventory at the end of each month. The merchandise cost per unit is $3. Prepare a merchandise purchases budget for the month of April. RAIDER-X COMPANY Merchandise Purchases Budget April Budgeted sales units Next period budgeted sales units Ratio of inventory to future sales Total required units Units to be purchased Cost per unit Cost of merchandise purchases
Zilly Company budgets sales of $146,000 for June. Zilly pays a sales manager a monthly salary of $6,700 and a commission of 8% of that month's sales dollars. Prepare a selling expense budget for June, ZILLY CO. Selling Expense Budget June Budgeted sales Salary for sales manager Total selling expenses
Swifty Company's budgeted sales and direct materials purchases are as follows. January February March (a) Budgeted Sales $164,000 180,400 205,000 (b) Budgeted D.M. Purchases Swifty's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Swifty's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. Total collections Prepare a schedule of expected collections from customers for March. $24,600 SWIFTY COMPANY Schedule of Expected Collections from Customers V Total payments 29,520 V 31,160 V $ $ March Prepare a schedule of expected payments for direct materials for March. SWIFTY COMPANY Schedule of Expected Payments for Direct Materials March 10000
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $81,000; May, $111,000; and June, $121,000. Payments are made as follows: 75% in the month of purchase and 25% in the month after purchase. The March 31 balance of accounts payable is $23,000. Prepare a schedule of budgeted cash payments for April, May, and June. April May June Current month purchases 75% Ending accounts payable 25% 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
Lindor Enterprises projects sales for the first three months of the year to be: $10,400 in January, $12,500 in February, and $13,100 in March. Cash receipts are expected to be: $8,580 in January, $11,820 in February, and $12,700 in March.They anticipate the following cash payments: Lindor Enterprises January February March Direct materials purchased $3,600 $4,200 $4,700 Direct labor costs $3,300 $4,000 $3,500 Depreciation on plant $570 $570 $570 Utilities for plant $650 $650 $650 Property taxes on plant $170 $170 $170 Depreciation on office $580 $580 $580 Utilities for office $350 $350 $350 Property taxes on office $180 $180 $180 Office salaries $3,000 $3,000 $3,000 All costs are paid in the month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a…

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