Question

Preparing an Accounts Payable SchedulePilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account:April $374,400May 411,200June 416,000Pilsner typically pays 25% on account in the month of billing and 75% the next month.

Answer 1

Answer:

The May cash payment = $383,600

The May cash payment = $412,400

Explanation:

The preparation of the account payable schedule is presented below:

                                        Account payable schedule

Particulars                   April                  May                 June,

Budgeted purchase   $374,400         $411,200          $416,000

Payment for the month

April                           $93,600            $280,800

                       ($374,400 × 25%)   ($374,400 × 75%)

May                                                      $102,800          $308,400

                                            ($411,200 × 25%) ($411,200 × 75%)

June                                                                             $1,04,000

                                                                           ($416,000 × 25%)

Total Payment       $93,600              $383,600          $412,400

So,

The May cash payment = $383,600

The May cash payment = $412,400