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Silly Sally, Inc. has direct materials purchases budgeted of $400,000 in May and $500,000 in June. Past experience indicates that the company pays for 60%
Silly Sally, Inc. has direct materials purchases budgeted of $400,000 in May and $500,000 in June. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During June, the following items were budgeted:
Wages expense$120,000
Purchase of office equipment200,000
Selling and administrative expenses126,000
Depreciation expense18,000
Required:
Compute the amount of budgeted cash disbursements for June.
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