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

question 131

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: $$\begin{array} { l r } \text { Wages Expense } & \$ 150,000 \\\text { Purchase of office equipment } & 72,000 \\\text { Selling and Administrative Expenses } & 48,000 \\\text { Depreciation Expense } & 36,000\end{array}$$ The budgeted cash disbursements for August are

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

---

Definitions:

Internal Audiences

Refers to the group of people within an organization who are the intended recipients of a message or information.

External Audiences

Individuals or entities not part of an organization, but who are impacted by or have an interest in its decisions and communications.

Repertoire

A collection or range of skills, techniques, or works that are available or used by a person or organization.

Light Revision

Minor changes and corrections made to a document to improve clarity, accuracy, or conformance without extensive rewriting.