Reference no: EM131765396
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
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jan |
feb |
march |
Payments: |
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Cash purchases |
$ |
$ |
$ |
Payment of credit purchases: |
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Jan purchases |
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feb purchases |
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march purchases |
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total payments |
$ |
$ |
$ |
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