1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ELEN [110]
3 years ago
12

Sun​ Industries' budgeted sales and direct materials purchases are as​ follows: Budgeted Sales Budgeted DM Purchases January ​$2

00,000 ​$30,000 February ​$220,000 ​$36,000 March ​$250,000 ​$38,000 Sales are​ 30% cash and​ 70% credit. Credit sales are collected in the month following sale. Direct materials purchases are paid​ 40% cash in the month of purchase and​ 60% in the month following purchase. What are budgeted cash payments for DM purchases for the month of February​?
Business
1 answer:
maria [59]3 years ago
8 0

Answer:

Total cash payments in February : $32400

Explanation:

Purchases on cash are generally collected immediately, hence if the purchase occurs in February, it would be collected in February itself. Purchases on credit on the other hand, is where the debtor can pay for the goods or services on a later date. In this case, part is paid at the time of purchase and another part is paid in the next month after the sale.

According to the information, in February $36,000 worth of purchase were made. Of this, 40% would be paid in February itself. 60% in March. At the same time, the business would also have to pay for the remainder of the $30,000 of purchases made in January in February. Hence, total cash payments in February are:

$36000 x 40% = $14400

$30000 x 60% = $18000

Total cash payments in February: $14400 + $18000 = $32400

You might be interested in
One benefit of specialization is that it​
tiny-mole [99]
-Whenever countries have different opportunity costs in production they can benefit from specialization and trade.
-Benefits of specialization include greater economic efficiency, consumer benefits, and opportunities for growth for competitive sectors.
8 0
3 years ago
The price (P) of designer jeans is affected by the supply (S) and the demand (D).
Sedbober [7]

Answer: The answer is A, an increased  demand and no change in supply.

Explanation: I just checked.

8 0
3 years ago
Sunland company installs a new parking lot. The paving cost $30,000 and the lights to illuminate the new parking area cost $12,0
padilas [110]

Answer:

D. $42,000 should be debited to Land Improvements

Explanation:

The cost of the land housing the parking is recorded in the land account. Other costs such as paving cost and lights are improvements and as such are added and recorded in the Land Improvements accounts.

Total Land improvements = $30,000 + $12,000

= $42,000

The right answer is D. $42,000 should be debited to Land Improvements.

4 0
3 years ago
How can I become a millionair
Crank
Lots of ways pick a subject and try hard.

8 0
3 years ago
Read 2 more answers
Someone who avoids the Sequence Pattern will typically
brilliants [131]
Will typically have a strong-willed learning environment.
7 0
3 years ago
Other questions:
  • A company incurs advertising costs of $10,000. The company's three selling departments have the following sales: Department 1—$1
    15·1 answer
  • If the cost of housing increases by 10 percent, then, other things the same, the CPI is likely to increase by about:(A) 10 perce
    8·1 answer
  • Is defined as information containing? patterns, relationships, and trends of various forms of data?
    9·1 answer
  • How is Japan dealing with economic concerns about an aging population?
    15·1 answer
  • What is an advantage of permanent life insurance policy
    15·1 answer
  • During a resuscitation, the team leader assigns team roles and tasks to each member. You recognize that a task has been overlook
    12·1 answer
  • Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. The firm has 55,000 shares of stock out
    10·1 answer
  • Deciding on the best means of transportation depends on ____.
    6·2 answers
  • A lottery winner can take $6million now or be paid $600,000 at the end of each year for the next 16 years. The winner calculates
    14·1 answer
  • The security that represents the residual ownership of a firm and has no priority in bankruptcy is called:________
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!