The Warrenburg Antique Mall expects to make purchases of direct material in the first quarter of...

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The Warrenburg Antique Mall expects to make purchases of direct material in the first quarter of 2024 as shown. Purchases in December 2023 are expected to be $92,000. The company expects that 60 percent of a month's purchases will be paid in the month of purchase and 40 percent will be paid in the following month. Estimate cash disbursements related to purchases for each month of the first quarter of 2024. Budgeted purchases Payment on material purchased prior month Payment on material purchased this month Total cash payment A: D: 2023 Dec. 2024 Jan. Feb. Mar. $92,000 $95,000 $120,000 $85,000 A B C D G EH F Answer B: C: E: F: G: H: I: The Warrenburg Antique Mall expects to make purchases of direct material in the first quarter of 2024 as shown. Purchases in December 2023 are expected to be $92,000. The company expects that 60 percent of a month's purchases will be paid in the month of purchase and 40 percent will be paid in the following month. Estimate cash disbursements related to purchases for each month of the first quarter of 2024. Budgeted purchases Payment on material purchased prior month Payment on material purchased this month Total cash payment A: D: 2023 Dec. 2024 Jan. Feb. Mar. $92,000 $95,000 $120,000 $85,000 A B C D G EH F Answer B: C: E: F: G: H: I:

Answer rating: 100% (QA)

A Payment on material purchased prior month In December 2023 the purchases were 92000 60 of this was ... View the full answer