Marigold, Inc. has budgeted direct materials purchases of $150500 in March and $239800 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense $75700 Purchase of office equipment 36500 Selling and administrative expenses 23300 Depreciation expense 18900 Accounts Receivable write-offs 9500 How much is budgeted cash disbursements for April? $316280 $358480 $204080 $339580
Marigold, Inc. has budgeted direct materials purchases of $150500 in March and $239800 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense $75700 Purchase of office equipment 36500 Selling and administrative expenses 23300 Depreciation expense 18900 Accounts Receivable write-offs 9500 How much is budgeted cash disbursements for April? $316280 $358480 $204080 $339580
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 4BE: Pasadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires...
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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.
Question
Marigold, Inc. has budgeted direct materials purchases of $150500 in March and $239800 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:
How much is budgeted cash disbursements for April?
| Wages expense | $75700 |
| Purchase of office equipment | 36500 |
| Selling and administrative expenses | 23300 |
| 18900 | |
| 9500 |
How much is budgeted cash disbursements for April?
$316280
$358480
$204080
$339580
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