Prepare a schedule of cash payments


Response to the following problem:

Boger Company provided the following information relating to cash payments:

a. Boger purchased direct materials on account in the following amounts:

June ................40,000

July ................45,000

August ............50,000

b. Boger pays 30 percent of accounts payable in the month of purchase and the remaining 70 percent in the following month.

c. In July, direct labor cost is $39,000. August direct labor cost was $48,000. The company finds that typically 90 percent of direct labor cost is paid in cash during the month, with the remainder paid in the following month.

d. August overhead amounted to $73,700, including $6,100 of depreciation.

e. Boger had taken out a loan of $112,000 on May 1. Interest, due with payment of principal, accrued at the rate of 12 percent per year. The loan and all interest were repaid on August 31.

Required:

Prepare a schedule of cash payments for Boger Company for the month of August.

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Managerial Accounting: Prepare a schedule of cash payments
Reference No:- TGS02074240

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