The projections of direct materials purchases that follow are for the Stromboli Corporation.
|
Purchases on Account
|
Cash Purchases
|
|
December, 2010
|
$40,000
|
$20,000
|
|
January, 2011
|
60,000
|
30,000
|
|
February, 2011
|
50,000
|
25,000
|
|
March, 2011
|
70,000
|
35,000
|
The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase.
Prepare a monthly schedule of expected cash payments for direct materials for the first quarter of 2011.