Purchases of Direct Material for May Were $105,000,while Expected Purchases

question 98

Multiple Choice

Purchases of direct material for May were $105,000,while expected purchases for June and July are $120,000 and $134,000,respectively.All purchases are paid 75% in the month of purchase and 25% the following month.Calculate the budgeted payments for the month of June.

• A) $116,250
• B) $108,750
• C) $120,000
• D) $30,000

Understand the role of environmental and societal factors in promoting a healthy lifestyle.

Apply theories and models like the theory of reasoned action, the theory of planned behavior, and the Transtheoretical Model to facilitate behavior change.

Recognize the importance of risk reduction and lifestyle choices in preventing diseases.

Identify the actions and interventions that promote health and prevent diseases.

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Definitions:

Plant

In terms of fixed assets, it refers to the buildings, machinery, equipment, and property used in the operations of a business.

Inventories

Items held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Useful Life

The period over which an asset is expected to be usable by an entity, affecting its depreciation or amortization.

Straight-line Method

A method of calculating depreciation of an asset where the cost is evenly allocated over its useful life, resulting in a consistent expense each period.