What is the remainder paid the month

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Reference no: EM132598818

The Blackbird Company estimates the following cash payments for July:

Total Direct Materials Purchases:

July $635,000, June $500,000, May $575,000

Total Direct Labour $67,000

Other Manufacturing Costs (Including Amortization $25,000) $160,000

Selling and Administrative Expenses $55,000

Capital Additions $50,000

Dividends to Shareholders $30,000

Question 1: It is estimated that Material Purchases are paid at a rate of 70% in the month of purchase, with the remainder paid the following month. All other expenses are paid in the month they occur.

Option a. $931,500

Option b. $956,500

Option c. $972,000

Option d. $998,000

Reference no: EM132598818

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