Question

Preparing an Accounts Payable Schedule Pilsner Inc. purchases raw materials on account for use in production. The direct materials ected purchases April May June Pilsner typically pays 25% on account in the month of billing and 75% the next month Required: 1. How much cash is required for payments on account in May? $374,400 411,200 416,000 2. How much cash is expected for payments on account in June?

Answer 1

QUESTION: The question is incomplete. The materials purchases budget was not added to your question. below is the remaining part of the question and the answer.

Expected Purchases on account:

April ------------ $374,400

May---------------$411,200

June -------------$416,000

Answer:

1. Cash payment for May = $383,600

2. Cash payment for June = $412,400

Step-by-step explanation:

Budget for payment of inventory is prepared as;

April May June

Budget purchases $374,400 $411,200 $416,000

Payment for the month:

April ($374,400*25%) $93,600 $280000

May ($411,200*25%) $102800 $308400

June ($416,000*25% $104000

Total: $93,600 $383,600 $412400

1. Therefore, cash payment for May = $383,600

2. Cash payment for June = $412,400

Answer 2

How much cash is expected for payments on account in June? = $412,400.

Step-by-step explanation:

Cash Required for expected payments on account in June

Pilsner Inc. pays 25% on account in the month of billing and the remaining 75% in the next month, therefore, for the month of June the total payment will include 75% of Purchases made in May and 25% of purchases made in June.

Purchases in May = $411,200

Purchases in June = $416,000

Total Payment for May = (75% of 411,200)+(25% of 416,000)

= $308,400 + $104,000

= $412,400.