5 Honest Joe anticipates total sales of $260.000 from July through October. Materials will represent...
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Accounting
5 Honest Joe anticipates total sales of $260.000 from July through October. Materials will represent 60 percent of sales and because of level production material purchases will be equal for each month during these four months Materials are paid for one month after the month purchased. Materials purchased in June were $22.000 (half of $44.000 in sales). Labour costs for each of the four months are slightly different due to a provision in the labour contract in which bonuses are paid in August and October. Fixed overhead is $8,000 monthly. The labour figures are: 12 July August September October $12,000 15,000 12,000 17,000 Prepare a schedule of cash payments for July through October Honest Joe Cash Payment Schedule July $ September October June $ August $ Purchase Payment to material purchases Labour Fixed overhead Total cash payments
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