Purchases of direct material for May were $114,000,while expected purchases for June and July are $121,000 and $140,000,respectively.All purchases are paid 75% in the month of purchase and 25% the following month.Calculate the budgeted payments for the month of June.
A) $119,250
B) $115,750
C) $121,000
D) $30,250

Question

Quizplus · Accepted Answer

A)
Calculation of budgeted payment for the month of June:
 11ea8870_3624_134d_bb89_41977095c7b5_TB5025_00

Purchases of Direct Material for May Were $114,000,while Expected Purchases