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Rus_ich [418]
3 years ago
5

Waterway Industries's direct materials budget shows total cost of direct materials purchases for January $200000, February $2200

00 and March $290000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are
Business
1 answer:
Romashka [77]3 years ago
3 0

Answer:

Total cash disbursement= $262,000

Explanation:

Giving the following information:

Purchases:

January= $200,000

February= $220,000

March= $290,000

Cash payments are 60% in the month of purchase and 40% in the following month.

<u>Cash disbursement March.</u>

Purchase on cash March= 290,000*0.6= 174,000

Purchase on account from February= 220,000*0.4= 88,000

Total cash disbursement= $262,000

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