Fedor, Inc. has prepared the following direct materials purchases budget: Month Budgeted DM Purchases June $67,000 July 77,000 August 76,300 September 78,000 October 70,200All purchases are paid for as follows: 40% in the month of purchase, 50% in the following month, and 10% two months after purchase. Calculate total budgeted cash payments made in October for purchases. Group of answer choices $67,080 $46,630 $35,710 $74,710
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Fedor, Inc. has prepared the following direct materials purchases budget:
| Month | Budgeted DM Purchases |
| June | $67,000 |
| July | 77,000 |
| August | 76,300 |
| September | 78,000 |
| October | 70,200 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
