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Weaver, Inc. has budgeted direct materials purchases of P150,000 in March and P240,000 in April. Past experience indicates that the company pays for 70%
Weaver, Inc. has budgeted direct materials purchases of P150,000 in March and P240,000 in April. 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. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense Purchase of office equipment P75,000 36,000 Selling and administrative exp 24,000 18,000 Depreciation expense How much is budgeted cash disbursements for April?
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To calculate the budgeted cash disbursements for April we need to consider the payment terms for dir...Get Instant Access to Expert-Tailored Solutions
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