Solution-What is the expected cash disbursement for month

What is the expected cash disbursement for month of march

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Reference no: EM132562591

BigCo estimates the following production in cases for the next 4 months.

Cases

Jan 5,000

Feb 6,000

Mar 7,000

Apr 8,000

Question 1: BigCo uses 20 lbs of direct material per case at a cost of $1.50 per pound. A company policy states that they will maintain a 10% inventory of the next month's needs. BigCo pays the vendor 80% in the month of purchase and the rest in the following month. It also receives a 2% discount on all purchases.What is the expected cash disbursement for the month of March?

Reference no: EM132562591

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What is the expected cash disbursement for month of march

Reference no: EM132562591

Reference no: EM132562591

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