The projections of direct materials purchases that follow are for the Sombo Corporation. The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase.
-What is the expected cash payment for direct materials for the month of February of Sombo?
A)$52,000
B)$72,000
C)$89,000
D)$95,000

Question

The projections of direct materials purchases that follow are for the Sombo Corporation. The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase.
-What is the expected cash payment for direct materials for the month of February of Sombo?
A)$52,000 
B)$72,000 
C)$89,000 
D)$95,000

Quizplus · Accepted Answer

The expected cash payment for direct materials for February is $89,000. This is based on the company's budget or forecast for material purchases and payment schedules.

The Projections of Direct Materials Purchases That Follow Are for the Sombo