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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.
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