15. A company has budgeted direct materials purchases of $600,000 in July and $960,000 in August. Past experience indicates that the company pays for 70% of its direct materials purchases in the month of purchase and the remaining 30% in the next month. Wages, equipment purchases, and Selling & Administrative expenses are paid in the month incurred. For August, Wage Expense is budgeted at $300,000, office equipment purchases are budgeted at $144,000, and selling & administrative expenses are budgeted at $96,000.

The budgeted cash disbursements for August are

a. $1,296,000.

b. $852,000.

c. $1,392,000.

d. $1,464,000.