Question: Wight Inc purchases raw materials on account for use in

Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account:
April ...... $ 374,400
May ...... 411,200
June ...... 416,000
Wight typically pays 20 percent on account in the month of billing and 80 percent the next month.
Required:
1. How much cash is required for payments on account in May?
2. How much cash is expected for payments on account in June?

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  • CreatedSeptember 22, 2015
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