Marvel Company provided the following information relating to cash payments.
a. Marvel purchased direct materials on account in the following amounts.
|
June
|
20,000
|
|
July
|
25,000
|
|
August
|
30,000
|
Marvel pays 25 percent of accounts payable in the month of purchase, and the remaining 75 percent in the following month.
b. In July, direct labor cost $40,000. August direct labor cost was $50,000. The com- pany finds that typically 90 percent of direct labor cost is paid in cash during the month, with the remainder paid in the following month.
c. August overhead amounted to $70,000, including $5,500 of depreciation.
d. Marvel took out a loan of $10,000 on May 1. Interest, due with payment of prin- cipal, accrued at the rate of 12 percent per year. The loan and all interest was repaid on August 31.
Required
Prepare a schedule of cash payments for Marvel Company for the month of August.