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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
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
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