The Projections of Direct Materials Purchases That Follow Are for the Sombo

question 106

Multiple Choice

The projections of direct materials purchases that follow are for the Sombo Corporation. $\begin{array}{lrr}&\text { Purchases on account }&\text { Cash Purchases }\\\text { December } & \$ 40,000 & \$ 30,000 \\\text { January } & 60,000 & 33,000 \\\text { February } & 50,000 & 35,000 \\\text { March } & 70,000 & 25,000\end{array}$
The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase.What is the expected cash payment for direct materials for the month of January?

• A) $33,000
• B) $85,000
• C) $102,000
• D) $108,000

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