Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September P850,000; October P900,000; November P810,000; December P780,000. At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Acmal expect to pay out for raw material purchases during the month of November?
Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September P850,000; October P900,000; November P810,000; December P780,000. At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Acmal expect to pay out for raw material purchases during the month of November?
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September P850,000; October P900,000; November P810,000; December P780,000. At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Acmal expect to pay out for raw material purchases during the month of November?
202,500
832,500
852,500
877,500
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