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S_A_V [24]
2 years ago
7

Preparing an Accounts Payable Schedule Pilsner Inc. purchases raw materials on account for use in production. The direct materia

ls ected purchases April May June Pilsner typically pays 25% on account in the month of billing and 75% the next month Required: 1. How much cash is required for payments on account in May? $374,400 411,200 416,000 2. How much cash is expected for payments on account in June?
Physics
2 answers:
irina1246 [14]2 years ago
5 0

Answer:

How much cash is expected for payments on account in June? = $412,400.

Explanation:

Cash Required for expected payments on account in June

Pilsner Inc. pays 25% on account in the month of billing and the remaining 75% in the next month, therefore, for the month of June the total payment will include 75% of Purchases made in May and 25% of purchases made in June.

Purchases in May = $411,200

Purchases in June = $416,000

Total Payment for May = (75% of 411,200)+(25% of 416,000)

= $308,400 + $104,000

= $412,400.

Lelu [443]2 years ago
3 0

QUESTION: The question is incomplete. The materials purchases budget was not added to your question. below is the remaining part of the question and the answer.

Expected Purchases on account:

April ------------ $374,400

May---------------$411,200

June -------------$416,000

Answer:

1. Cash payment for May = $383,600

2. Cash payment for June = $412,400

Explanation:

Budget for payment of inventory is prepared as;

                                                  April                    May                  June

Budget purchases                $374,400            $411,200           $416,000

Payment for the month:

April ($374,400*25%)             $93,600             $280000        

May ($411,200*25%)                                           $102800          $308400

June ($416,000*25%                                                                   $104000

 Total:                                  $93,600             $383,600            $412400

1. Therefore, cash payment for May = $383,600

2. Cash payment for June = $412,400

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