Question

Expected purchases for June and July are $ 78 comma 000 and $ 92 comma 000​, respectively. Purchases for May were $ 59 comma 000. All purchases are paid 40​% in the month of purchase and 60​% the following month. At what amount are June payments for purchases​ budgeted?

Answer 1

Answer:

$66,200

Explanation:

Given,

Purchases in May = $59,000

Purchases in June = $78,000

Purchases in July = $92,000

All purchases are paid 40​% in the month of purchase and 60​% the following month.

Therefore,

Amount paid in June = 60% purchases in May + 40% Purchases in June

                                   = 60% × $59000 + 40% × $78000

                                   = $35000 + $31200

                                   = $66,200