Maltese Industries Ltd.is preparing its cash disbursements budget for the coming month.The following information pertains to the cash disbursements:
I.Maltese Industries Ltd.pays for 60% of its direct materials purchases in the month of purchase and the remainder the following month.Last month's direct material purchases were $45,000, while Maltese Industries Ltd.anticipates $50,000 of direct material purchases this coming month.
II.Direct labour for the upcoming month is budgeted to be $42,000 and will be paid at the end of the upcoming month.
III.Overhead is estimated to be 150% of direct labour cost each month and is paid in the month in which it is incurred.This monthly estimate includes $10,000 of depreciation on the plant and equipment.
IV.Monthly operating expenses for next month are expected to be $32,500, which includes $2,500 of depreciation on office equipment.These monthly operating expenses are paid during the month in which they are incurred.
V.Maltese Industries Ltd.will be making an estimated tax payment of $6,000 next month.
VI.Maltese Industries Ltd.will be making their quarterly dividend payment next month in the amount of $20,000
What is the budgeted total cash disbursement for next month?

Question

Quizplus · Accepted Answer

The budgeted total cash disbursement for next month includes: - 60% of this month's direct material purchases ($50,000 * 60% = $30,000) and 40% of last month's purchases ($45,000 * 40% = $18,000), totaling $48,000.- Direct labour of $42,000.- Overhead excluding depreciation ($42,000 * 150% - $10,000 = $53,000).- Operating expenses excluding depreciation ($32,500 - $2,500 = $30,000).- Estimated tax payment of $6,000.- Dividend payment of $20,000.Adding these amounts gives $48,000 + $42,000 + $53,000 + $30,000 + $6,000 + $20,000 = $199,000.