Advance Engineering Makes Payments on Its Inventory Purchases as Follows-30

question 24

Multiple Choice

Advance Engineering makes payments on its inventory purchases as follows-30% in the month of purchase, 50% in the following month, and 20% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $50 000, $43 000 and $56 000, respectively. At what amount are cash payments for inventory in August budgeted?

• A)$40 500
• B)$48 300
• C)$56 000
• D)$51 900

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Definitions:

Oldowan Technology

The earliest known stone tool industry, characterized by simple tools and used by early humans around 2.6 million years ago.

Hand Axe

A prehistoric stone tool with two faces that was used for chopping, cutting, and scraping, characteristic of the Lower Palaeolithic period.

Bifacial Chopper

A type of prehistoric stone tool with sharp edges on both sides, used by early humans for cutting and chopping.

Hominin Tools

Artifacts made by early humans and their predecessors used for various purposes like hunting and tool-making.