Becham Inc. had the following purchases budgeted for the last quarter of 2013: Becham pays one-half of a month's purchases in the month of purchase and the remainder in the following month. What are expected cash disbursements for the month of December?
A) $124,500
B) $ 84,000
C) $ 87,000
D) $ 42,000

Question

Becham Inc. had the following purchases budgeted for the last quarter of 2013:  Becham pays one-half of a month's purchases in the month of purchase and the remainder in the following month. What are expected cash disbursements for the month of December?
A) $124,500 
B) $ 84,000 
C) $ 87,000 
D) $ 42,000

Quizplus · Accepted Answer

The total purchases budgeted for the last quarter of 2013 are $522,000 ($174,000 per month for October, November, and December). 
Becham pays one-half of a month's purchase in the month of purchase, so for December, they would pay one-half of $174,000, which is $87,000.