Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 25% in the month of purchase,65% in the following month,and 10% in the second month following purchase.Budgeted inventory purchases for June,July,and August are $15,000,$19,000 and $24,000,respectively.What is the budgeted amount of cash payments to account for inventory in August at Hammond's Cookie Toppings?

Question

Quizplus · Accepted Answer

D)
June $15,000 × 10% $1,500
July 19,000 × 65 % 12,350
Aug.24,000 × 25% 6,000
Total $19,850

Hammond's Cookie Toppings Makes Payments on Its Inventory Purchases as Follows