Question 7View PoliciesCurrent Attempt in ProgressA company has budgeted direct materials purchases of $310000 in July and $470000 in August. Past experienceindicates that the company pays for 70 % of its purchases in the month of purchase and the remaining 30% in the nextmonth. During August, the following items were budgeted:$100000Wages Expense67000Purchase of office equipment44000Selling and Administrative Expenses31000Depreciation ExpenseThe budgeted cash disbursements for August areO $664000.O $422000.O $589000.O $633000.hp44nsprt scdeletehome&75numbackspacelockUhomeKenterN MI

Question
Asked Nov 28, 2019
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Question 7
View Policies
Current Attempt in Progress
A company has budgeted direct materials purchases of $310000 in July and $470000 in August. Past experience
indicates that the company pays for 70 % of its purchases in the month of purchase and the remaining 30% in the next
month. During August, the following items were budgeted:
$100000
Wages Expense
67000
Purchase of office equipment
44000
Selling and Administrative Expenses
31000
Depreciation Expense
The budgeted cash disbursements for August are
O $664000.
O $422000.
O $589000.
O $633000.
hp
44
ns
prt sc
delete
home
&
7
5
num
backspace
lock
U
home
K
enter
N M
I
help_outline

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Question 7 View Policies Current Attempt in Progress A company has budgeted direct materials purchases of $310000 in July and $470000 in August. Past experience indicates that the company pays for 70 % of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted: $100000 Wages Expense 67000 Purchase of office equipment 44000 Selling and Administrative Expenses 31000 Depreciation Expense The budgeted cash disbursements for August are O $664000. O $422000. O $589000. O $633000. hp 44 ns prt sc delete home & 7 5 num backspace lock U home K enter N M I

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Expert Answer

Step 1

Budgeted cash payments are a part of cash budgets that represents the amount of cash that is expected to be spent by an organization during a specific period.

Step 2

To calculate cash budgeted to be disbursed in August:

Payment made for direct material purchased in July= 30% of $310,000

                                                                                  = $93,000

Payment made for direct material purchased in August= 70% of $470,000

                                         &nbs...

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