A Company Has Budgeted Direct Materials Purchases of $300,000 in July

Multiple Choice

A company has budgeted direct materials purchases of $300,000 in July and $480,000 in August.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 August, the following items were budgeted: $\begin{array}{lr}\text { Wages Expense } & \$ 150,000 \\\text { Purchase of office equipment } & 72,000 \\\text { Selling and Administrative Expenses } & 48,000 \\\text { Depreciation Expense } & 36,000\end{array}$ The budgeted cash disbursements for August are

A) $648,000.
B) $426,000.
C) $696,000.
D) $732,000.