Reference no: EM131693705

Question: Cash Payments Schedule Draper Company provided the following information relating to cash payments:

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

June              $76,000

July                 82,000

August             69,000

b. Draper pays 15 percent of accounts payable in the month of purchase and the remaining 85 percent in the following month.

c. In July, direct labor cost was $34,500. August direct labor cost was $36,700. 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 $83,200, including $5,900 of depreciation.

e. Draper had taken out a loan of $15,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9 percent per year. The loan and all interest were repaid on August 31.

Required: Prepare a schedule of cash payments for Draper Company for the month of August.