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

question 86

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 February?

• A) $52,000
• B) $72,000
• C) $89,000
• D) $95,000

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Definitions:

Combine

The act of joining or merging two or more items into a single entity, often used in mathematical operations like addition or combination.

Simplify

The process of making an expression easier to understand or solve by reducing it to its most basic form.

Combine

To merge or unite two or more items or quantities to form a single entity.

Simplify

The process of altering an expression to make it easier to understand or solve by combining like terms or using properties of operations.