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Burr, Inc.'s direct materials budget shows total cost of direct materials purchases for April $400,000, May $480,000 and June $560,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for June are Select one: a. $528,000 b. $512,000 c. $480,000 d. $416,000

Respuesta :

Answer:

a. $528,000

Explanation:

Burr, Inc.'s direct materials budget shows

total cost of direct materials purchases for

Particulars                 April              May          June

Direct Materials     $400,000,  $480,000  $560,000.

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

The budgeted cash payments for June will be 40% of may and 60% of June which is (0.4 x 480,000) + (0.6 x 560,000) = $528,000

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