ABC Company’s raw materials purchases for June, July, and August are budgeted at $47,000, $37,000, and $62,000, respectively. Based on past experience, ABC expects that 50% of a month’s raw material purchases will be paid in the month of purchase and 50% in the month following the purchase. Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August. find the current months purchases for august and prior months purchases
ABC Company’s raw materials purchases for June, July, and August are budgeted at $47,000, $37,000, and $62,000, respectively. Based on past experience, ABC expects that 50% of a month’s raw material purchases will be paid in the month of purchase and 50% in the month following the purchase. Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August. find the current months purchases for august and prior months purchases
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 6BE: Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase...
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Question
ABC Company’s raw materials purchases for June, July, and August are budgeted at $47,000, $37,000, and $62,000, respectively. Based on past experience, ABC expects that 50% of a month’s raw material purchases will be paid in the month of purchase and 50% in the month following the purchase.
Required:
Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August. find the current months purchases for august and prior months purchases
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