Reference no: EM132732360

Question - A company has budgeted direct materials purchases of $300,000 in September and $480,000 in October. 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 October, the following items were budgeted:

Wages Expense $150,000

Purchase of office equipment 72,000

Selling and Administrative Expenses 48,000

Depreciation Expense 36,000

Required - What are the budgeted cash disbursements for October?

a) $648,000

b) $426,000

c) $696,000

d) $732,000