Chattanooga company has budgeted direct materials purchases of $312,281 in July and $439,985 in August. Past...

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Chattanooga company has budgeted direct materials purchases of $312,281 in July and $439,985 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were also budgeted to be incurred and paid as appropriate: Wages $150,000 Purchase of office equipment in August 72,000 Selling and Administrative Expenses 48,000 Depreciation Expense 36,000 How much is budgeted for total cash disbursements for the month of August? Chattanooga company has budgeted direct materials purchases of $312,281 in July and $439,985 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were also budgeted to be incurred and paid as appropriate: Wages $150,000 Purchase of office equipment in August 72,000 Selling and Administrative Expenses 48,000 Depreciation Expense 36,000 How much is budgeted for total cash disbursements for the month of August?

Answer rating: 100% (QA)

To calculate the budgeted total cash disbursements for the month of August we need to consider the p... View the full answer