Blustery Fans is a manufacturer of oscillating fans. It has budgeted direct materials purchases of $100,000 in March and $160,000 in April. Past experience indicates that Blustery pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. In addition to direct materials, the following items were budgeted for April: Wages expense Purchase of office equipment $50,000 24,000 Operating expenses (paid as incurred) 16,000 Depreciation expense 12,000 The budgeted cash disbursements for April are: a. $216,000. b. $142,000. c. $232,000. d. $244,000.

Blustery Fans is a manufacturer of oscillating fans. It has budgeted direct materials purchases of $100,000 in March and $160,000 in April. Past experience indicates that Blustery pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. In addition to direct materials, the following items were budgeted for April: Wages expense Purchase of office equipment $50,000 24,000 Operating expenses (paid as incurred) 16,000 Depreciation expense 12,000 The budgeted cash disbursements for April are: a. $216,000. b. $142,000. c. $232,000. d. $244,000.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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