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

question 70

Multiple Choice

The projections of direct materials purchases that follow are for the Sombo Corporation. $\begin{array}{lll}&\text { Purclases on Account}&\text { Cash Purchases }\\\text { December } & \$ 40,000 & \$ 30,000 \\\text { January } & 60,000 & 33,000 \\\text { February } & 50,000 & 35,000 \\\text { March } & 70,000 & 25,000\end{array}$
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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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Definitions:

Rationality Strategy

The approach of making decisions based on logical reasoning and systematic analysis to achieve the most optimal outcome.

Appeal to Higher Loyalties

A justification for behavior that is based on the claim that the action was in service of a higher principle or greater good, sometimes used to rationalize unethical acts.

Expense Report

A detailed report produced by employees to document and request reimbursement for expenditures made on behalf of the company.

Corporate Social Responsibility

The commitment of a business to contribute to sustainable economic development by working with employees, their families, the local community, and society to improve quality of life in a way that is beneficial for both the business and development.