Jayson Company has the following projected costs for manufacturing and selling and administrative expenses: Prepare a schedule of cash payments for Jayson for January, February, and March. Determine the balances in Prepaid Property Taxes, Accounts Payable, and Utilities Payable as of March 31. (If an input field is not used in the table leave the input field empty; do not enter a zero.) March January February Direct materials purchases $3,200 $3,700 $4,200 Direct labor costs 3,400 3,500 3,600 Depreciation on plant 700 700 700 Utilities for plant 450 450 450 Property taxes on plant 250 250 250 Depreciation on office 200 200 200 Utilities for office 550 550 550 Property taxes on office 180 180 180 Office salaries 6,500 6,500 6,500 All costs are paid in month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a zero balance on January 1. January February

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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Jayson Company has the following projected costs for manufacturing and selling and administrative expenses:

Prepare a schedule of cash payments for Jayson for January, February, and March. Determine the balances in Prepaid Property Taxes, Accounts Payable, and Utilities Payable as of March 31. (If an input field is not used in the table leave the input field empty; do not enter a zero.)

March

	January	February
Direct materials purchases	$3,200	$3,700	$4,200
Direct labor costs	3,400	3,500	3,600
Depreciation on plant	700	700	700
Utilities for plant	450	450	450
Property taxes on plant	250	250	250
Depreciation on office	200	200	200
Utilities for office	550	550	550
Property taxes on office	180	180	180
Office salaries	6,500	6,500	6,500

All costs are paid in month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a zero balance on January 1.

	January	February	March	Total
Cash Payments
Direct Materials:
Accounts Payable balance, January 1
January—Direct material purchases paid in February
February—Direct material purchases paid in March
Total payments for direct materials

Direct Labor:
Total payments for direct labor	3400	3500	3600	10,500


Manufacturing Overhead:
Utilities for plant
Property taxes on plant
Total payments for manufacturing overhead

Selling and Administrative Expenses:
Utilities for office
Property taxes on office
Office salaries
Total payments for Selling and Admin. expenses

Total cash payments

Acccount balances, March 31:
Prepaid Property Taxes
Accounts Payable
Utilities Payable

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