Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month. If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050, then in August the total budgeted cash disbursements for raw materials purchases is closest to:

(A) $265,150

(B) $153,930 (C) $166,830

(D) $111,220

Question

Doran

Business

5 July, 21:23

Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month. If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050, then in August the total budgeted cash disbursements for raw materials purchases is closest to:

(A) $265,150

(B) $153,930 (C) $166,830

(D) $111,220

+1

Answers (1)

Know the Answer?

Zachery Booth · Answer 1

The correct answer is A.

Explanation:

Giving the following information:

Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month. If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050

Cash disbursements:

From July = 256,550*0.60 = 153,930

From August = 278,050*0.4 = 111,220

Total = $265,150