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

The May cash payment = $383,600

The May cash payment = $412,400

Step-by-step 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