Delleate Inc. has prepared the following purchases budget: Month Budgeted Purchases June $67,000 July 72,500 August 76,300 September 73,700 October 69,200 All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate total cash payments made in October for purchases.
Delleate Inc. has prepared the following purchases budget: Month Budgeted Purchases June $67,000 July 72,500 August 76,300 September 73,700 October 69,200 All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate total cash payments made in October for purchases.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 6BE: Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase...
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Question
Delleate Inc. has prepared the following purchases budget:
Month |
Budgeted Purchases |
June |
$67,000 |
July |
72,500 |
August |
76,300 |
September |
73,700 |
October |
69,200 |
All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate total cash payments made in October for purchases.
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