A company has budgeted direct materials purchases of $380000 in July and $540000 in August. Past experience
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Question:
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.
Posted Date: