110

A company has budgeted direct materials purchases of $300000 in July and $460000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted:

Wages Expense	$90000
Purchase of office equipment	66000
Selling and Administrative Expenses	43000
Depreciation Expense	30000

The budgeted cash disbursements for August are

$641000.

$412000.

$568000.

$61100