Gunkle Company has budgeted direct materials purchases of $400,000 in March and $600,000 in April. Past experience indicates that the company pays for 65% of its purchases in the month of purchase and the remaining 35% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:
Instructions
Compute the amount of budgeted cash disbursements for April.

Question

Gunkle Company has budgeted direct materials purchases of $400,000 in March and $600,000 in April. Past experience indicates that the company pays for 65% of its purchases in the month of purchase and the remaining 35% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:  
Instructions
Compute the amount of budgeted cash disbursements for April.

Quizplus · Accepted Answer

The Answer of Gunkle Company has budgeted direct materials purchases of $400,000 in March and $600,000 in April. Past experience indicates that the company pays for 65% of its purchases in the month of purchase and the remaining 35% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:  
Instructions
Compute the amount of budgeted cash disbursements for April.

Gunkle Company Has Budgeted Direct Materials Purchases of $400,000 in March