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

question 98

Multiple Choice

The projections of direct materials purchases that follow are for the Sombo Corporation. $\begin{array}{lrr} & \text { Purchases on } & \\& \text { Account } & \text { Cash Purchases } \\\text { December } & \$ 40,000 & \$ 30,000 \\\text { January } & 60,000 & 27,000 \\\text { February } & 50,000 & 35,000 \\\text { March } & 70,000 & 25,00\end{array}$ 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) $27,000
• B) $79,000
• C) $96,000
• D) $102,000

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Definitions:

Surveillance

The close observation or monitoring of activities or individuals, often used for protection, security, or data gathering.

Corporate Culture

The shared values, beliefs, and practices that characterize an organization and shape its behavior, influencing employee morale, commitment, and productivity.

Programmed Routines

Established procedures for handling frequently occurring tasks which simplify decision-making processes.

Organizational Life

Refers to the collective social, cultural, and workplace dynamics within an organization.