Delleate, Inc has prepared the following direct materials purchases budget
Month Budgeted DM Purchases
June $67,000
July 77,000
August 76,300
September 78,000
October 70,200
All purchases are paid for as follows: 40% in the month of purchase, 50% in the following month, and 10% two months after purchase. Calculate total cash payments made in October for purchases.
A) $67,080
B) $46,630
C) $35,710
D) $74,710
D .D)
Payments in October:
For Oct. purchases
(40% x $70,200 ) $28,080
For Sept. purchases
(50% x $78,000 ) 39,000
For Aug. purchases
(10% x $76,300 ) 7,630
Total cash paid $74,710
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