Delleate,Inc.has prepared the following direct materials purchases budget: $$\begin{array} { | l | r | }
\hline& { \text { Budgeted DM } } \
\text { Month } & \text { Purchases } \
\hline \text { June } & \$ 67,000 \
\hline \text { July } & 77,000 \
\hline \text { August } & 76,300 \
\hline \text { September } & 78,000 \
\hline \text { October } & 70,200 \
\hline
\end{array}$$ All purchases are paid for as follows: 40% in the month of purchase,50% in the following month,and 10% two months after purchase.Calculate total cash payments made in October for purchases.

Question

Delleate,Inc.has prepared the following direct materials purchases budget: $$\begin{array} { | l | r | } 
\hline& { \text { Budgeted DM } } \
\text { Month } & \text { Purchases } \
\hline \text { June } & \$ 67,000 \
\hline \text { July } & 77,000 \
\hline \text { August } & 76,300 \
\hline \text { September } & 78,000 \
\hline \text { October } & 70,200 \
\hline
\end{array}$$ All purchases are paid for as follows: 40% in the month of purchase,50% in the following month,and 10% two months after purchase.Calculate total cash payments made in October for purchases.

Quizplus · Accepted Answer

In October, payments include 40% of October purchases ($70,200 * 0.40 = $28,080), 50% of September purchases ($78,000 * 0.50 = $39,000), and 10% of August purchases ($76,300 * 0.10 = $7,630). Total = $28,080 + $39,000 + $7,630 = $74,710.

Delleate,Inc All Purchases Are Paid for as Follows: 40% in the |