Amaya Company is estimating the following raw material purchases for the last four months of the year: September – P900,000 October – P800,000 November – P 700,000 December – P1,000,000 At Amaya 60% of raw materials purchases are normally paid for in the month of purchase. The remaining 40% is paid for in the month following the purchase. Purchases for August amounted to P700,000. How much is the total cash disbursement for September?

Amaya Company is estimating the following raw material purchases for the last four months of the year: September – P900,000 October – P800,000 November – P 700,000 December – P1,000,000 At Amaya 60% of raw materials purchases are normally paid for in the month of purchase. The remaining 40% is paid for in the month following the purchase. Purchases for August amounted to P700,000. How much is the total cash disbursement for September?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12EB: Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the...

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Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
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