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    linoluvit's Avatar
    linoluvit Posts: 2, Reputation: 1
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    #1

    Oct 22, 2008, 11:53 AM
    Manufacturing cost
    Depreciation represents $25,000 of the estimated monthly manufacturing cost. Of the remainder of the manufacturing cost 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current liabilities as of August 1 include $100,000,15%, 90-day note payable due October 20 and $65,000 of accounts payable incurred in July for manufacturing cost.
    Manufacturing costs: August-$350,000, September $360,000, October $410,000.
    Find the manufacturing cost for each month?
    linoluvit's Avatar
    linoluvit Posts: 2, Reputation: 1
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    #2

    Oct 22, 2008, 12:03 PM

    (350,000-25,000)*80%+(350,000-25,000)*20%=675,000 Aug
    (360,000-25,000)*80%+(360,000-25,000)*20%=695,000 Sept.
    (410,000-25,000)*80%+(410,000-25,000)*20%=795,000 Oct.

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