Reed Merchandising Company expects to purchase $90,000 of materials in July and

ID: 2381414 • Letter: R

Question

Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?
Question 33 options: $67500 $78750 $101250 $105000 Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?
Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?
$67500 $78750 $101250 $105000 $67500 $78750 $101250 $105000 $67500 $78750 $101250 $105000

Explanation / Answer

Hi,

Please find the answer as follows;

Cash Disbursement = 105000*3/4 (August) + 90000*1/4 (July) = 101250

Option C is correct.

Thanks.

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Reed Corp. has set the following standard direct materials and direct labor cost

Reed Merchandising Company expects to purchase $90,000 of materials in July and

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Reed Merchandising Company expects to purchase $90,000 of materials in July and

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