Answered

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A company has budgeted direct materials purchases of $230000 in July and $400000 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 $60000
Purchase of office equipment 63000
Selling and Administrative Expenses 39000
Depreciation Expense 27000
The budgeted cash disbursements for August are:__________

Sagot :

Zviko

Answer:

$511,000

Explanation:

The budgeted cash disbursements for August are :

Purchases - 70% x $400000                            $280,000

Purchases - 30 % x $230000                             $69,000

Wages Expense                                                   $60,000

Purchase of office equipment                             $63,000

Selling and Administrative Expenses                 $39,000

Total                                                                      $511,000

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