Purchases of Direct Material for May Were $115,000,while Expected Purchases

question 69

Multiple Choice

Purchases of direct material for May were $115,000,while expected purchases for June and July are $121,000 and $136,000,respectively.All purchases are paid 25% in the month of purchase and 75% the following month.Calculate the budgeted payments for the month of June.

• A)$116,500
• B)$119,500
• C)$121,000
• D)$90,750

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Definitions:

Common Share Price

The price at which a corporation's common shares are bought and sold on the stock market.

Rights-On Period

A defined timeframe during which shareholders can purchase additional shares before the public.

Dutch Auction

A type of auction where the auctioneer starts with a high asking price and lowers it until a participant is willing to accept the auctioneer's price, or a predetermined minimum price is reached.

Selling Shares

Selling shares refers to the act of disposing of ownership in a company by selling stock in the financial market, often to realize capital gains or liquidate an investment.