A Company Has Budgeted Direct Materials Purchases of $300,000 in July

question 109

Multiple Choice

A company has budgeted direct materials purchases of $300,000 in July and $480,000 in August.Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month.During August, the following items were budgeted: $\begin{array}{lr}\text { Wages Expense } & \$ 150,000 \\\text { Purchase of office equipment } & 72,000 \\\text { Selling and Administrative Expenses } & 48,000 \\\text { Depreciation Expense } & 36,000\end{array}$ The budgeted cash disbursements for August are

• A)$648,000.
• B)$426,000.
• C)$696,000.
• D)$732,000.

---

Definitions:

FSH Secretion

Refers to the release of Follicle-Stimulating Hormone by the anterior pituitary gland, which plays a key role in the regulation of growth, reproduction, and pubertal development.

LH Secretion

The release of luteinizing hormone, a key hormone in the regulation of the reproductive system.

Puberty

The developmental stage in humans and other animals during which adolescents mature sexually and become capable of reproduction.

GnRH Levels

Refers to the concentration of Gonadotropin-Releasing Hormone, a pivotal hormone in the reproductive system that stimulates the release of sex hormones.