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Question - A company has budgeted direct materials purchases of $300,000 in September and $480,000 in October. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During October, the following items were budgeted:
Wages Expense $150,000
Purchase of office equipment 72,000
Selling and Administrative Expenses 48,000
Depreciation Expense 36,000
Required - What are the budgeted cash disbursements for October?
a) $648,000
b) $426,000
c) $696,000
d) $732,000
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