A company has budgeted direct materials purchases of $300000 in July and $480000 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$150000Purchase of office equipment72000Selling and Administrative Expenses48000Depreciation Expense36000

The budgeted cash disbursements for August are

$426000.

$696000.

$732000.

$648000.