A company has budgeted direct materials purchases of $380000 in July and $540000 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 $170000

Purchase of office equipment 74000

Selling and Administrative Expenses 56000

Depreciation Expense 38000

The budgeted cash disbursements for August are

$736000.

$492000.

$792000.

$830000.