Asked by Abo Yousef Khaleel on May 21, 2024
Verified
Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month.If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050, then in August the total budgeted cash disbursements for raw materials purchases is closest to:
A) $265,150
B) $153,930
C) $166,830
D) $111,220
Cash Disbursements
Payments made in cash by a business during a period of time.
Raw Materials Purchases
The total cost of raw materials bought by a company for production purposes during a specific time frame.
- Calculate total budgeted cash disbursements for raw materials purchases.
Verified Answer
KA
Kaleea ArkellMay 27, 2024
Final Answer :
A
Explanation :
The estimated cash disbursements for materials purchases in August is computed as follows:
Learning Objectives
- Calculate total budgeted cash disbursements for raw materials purchases.
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