Weaver, Inc. has budgeted direct materials purchases of P150,000 in March and P240,000 in April. Past...

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Weaver, Inc. has budgeted direct materials purchases of P150,000 in March and P240,000 in April. 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. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense Purchase of office equipment P75,000 36,000 Selling and administrative exp 24,000 18,000 Depreciation expense How much is budgeted cash disbursements for April? Weaver, Inc. has budgeted direct materials purchases of P150,000 in March and P240,000 in April. 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. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense Purchase of office equipment P75,000 36,000 Selling and administrative exp 24,000 18,000 Depreciation expense How much is budgeted cash disbursements for April?

Answer rating: 100% (QA)

To calculate the budgeted cash disbursements for April we need to consider the payment terms for dir... View the full answer