Question

6 of 12 (5 complete) HW Score: 13.74%, 3.44 of 2 Score: 0 of 1 pt 59-12 (similar to) Question Help Stampede Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: (Click the icon to view the data.) How much cash will be paid out next month? * More Info Stampede Corporation Cash Payments Budget Cash payments for direct materials: 55% of last month's purchases 45% of next month's purchases Cash payments for direct labor Cash payments for manufacturing overhead Cash payments for operating expenses Cash payment for taxes a. Stampede Corporation pays for 45% of its direct materials purchases in the month of purchase and the remainder the following month. Last month's direct material purchases were $74,000, while the company anticipates $81,000 of direct material purchases next month. Direct labor for the upcoming month is budgeted to be $37,000 and will be paid at the end of the upcoming month. c. Manufacturing overhead is estimated to be 160% of direct labor cost each month and is paid in the month in which it is incurred. This monthly estimate includes $18,000 of depreciation on the plant and equipment. d. Monthly operating expenses for next month are expected to be $47,000, which includes $2,300 of depreciation on office equipment and $1,000 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred. e. Stampede Corporation will be making an estimated tax payment of $7,000 next month. Total cash payments Print Done

Answer 1

Cash payment budget

Cash payment for direct material
55% of last month's purchase (74000*55%)	40700
45% of next month's purchase (81000*45%)	36450
Cash payment for direct labor	37000
Cash payment for manufacturing overhead (37000*1.6-18000)	41200
Cash payment for operating expense (47000-2300-1000)	43700
Cash payment for taxes	7000
Total Cash payment	206050