Sun Sdn Bhd. has budgeted direct materials purchases of RM400,000 in March and RM500,000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:

Wages expense RM120,000
Purchase of office equipment 200,000
Selling and administrative expenses 126,000
Depreciation expense 18,000

Required:
Compute the amount of budgeted cash disbursements for April.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer 906000 Total Budgeted Cash ... View the full answer