Qusetion: Paddu Company's budgeted sales and direct materials purchases follow. January was the first month of operations.
Budgeted Sales:
January $145,000; February $188,000; March $250,000
Budgeted Direct Materials Purchases:
January $40,500; February $36,300; March $44,800
Paddu's sales are 40% cash and 60% credit. It collects credit sales 45% in the month of sale, 55% in the month following the sale.
Paddu's purchases are 40% cash and 60% on account. It pays purchases on account 35% in the month of purchase, and 65% in the month following purchase.
Perpare a schedule of expected payments for direct materials for jan, feb, march
|
jan |
feb |
march |
| Payments: |
|
|
|
| Cash purchases |
$ |
$ |
$ |
| Payment of credit purchases: |
|
|
|
| Jan purchases |
|
|
|
| feb purchases |
|
|
|
| march purchases |
|
|
|
| total payments |
$ |
$ |
$ |