[linoluvit]

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]

(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.