Lark Corp'S Direct Materials Budget Shows Total Cost of Direct Materials

question 102

Multiple Choice

Lark Corp.'s direct materials budget shows total cost of direct materials purchases for January $250000 February $300000 and March $350000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are

• A) $330000.
• B) $320000.
• C) $300000.
• D) $260000.

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Definitions:

Spanish Model

Refers to the architectural, cultural, or political systems and practices influenced by or originating from Spain.

Joint Stock Companies

Businesses owned by shareholders who contribute capital and share in the profits and losses.

Massachusetts Bay Company

A joint-stock trading company chartered in 1629 to establish a colony in New England; played a key role in the settlement and development of Massachusetts.

Dutch West India Company

A chartered company of Dutch merchants in the 17th century that established and directed trade throughout the Atlantic, including the slave trade and the settlement of New Netherland, now New York.