Question

​Fedor, Inc. has prepared the following direct materials purchases​ budget: Month Budgeted DM Purchases June $ 67 comma 000 July 75 comma 500 August 76 comma 300 September 78 comma 400 October 80 comma 000 All purchases are paid for as​ follows: 10​% in the month of​ purchase, 40​% in the following​ month, and 50​% two months after purchase. Calculate total budgeted cash payments made in October for purchases.

Answer 1

Total cash payment= $77,510

Step-by-step explanation:

Giving the following information:

Purchases:

August= 76,300

September= $78,400

October= $80,000

All purchases are paid for as​ follows:

10​% in the month of​ purchase

40​% in the following​ month

50​% two months after purchase.

Cash payment October:

Purchases on cash October= 80,000*0.1= 8,000

Purchases on account September= 78,400*0.4= 31,360

Purchases on account August= 76,300*0.5= 38,150

Total cash payment= $77,510