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Bates Boogie Boards has budgeted direct materials purchases of $120,000 in March and $160,000 in April. Past experience indicates that the company pays for 40%
Bates Boogie Boards has budgeted direct materials purchases of $120,000 in March and $160,000 in April. Past experience indicates that the company pays for 40% of its purchases in the month of purchase and the remaining 60% in the next month. During April, the following items were budgeted:
Wages Expense $32,000
Purchase of office equipment 13,000
Selling and Administrative Expenses 25,000
Depreciation Expense 9,000
How much are budgeted cash disbursements for April?
a. $214,000
b. $223,000
c. $206,000
d. $127,000
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