Budgeted purchases for the Carballo Company for the second quarter of 2015 are as follows:

Budgeted Purchases

April May June

$125,000 $150,000 $250,000

The company pays 40% of their purchases in the month of purchase and 60% in the following month. Budgeted cash payment for inventory for May would be:

Question 1 options:

a)

$150,000

b)

$135,000

c)

$140,000

d)

$90,000

e)

$60,000