Expected Direct Materials Purchases for Wade Company Are $630000 in the First

Multiple Choice

Expected direct materials purchases for Wade Company are $630000 in the first quarter and $810000 in the second quarter.Forty percent of the purchases are paid in cash as incurred and the balance is paid in the following quarter.The budgeted cash payments for purchases in the second quarter are:

A) $864000.
B) $810000.
C) $702000.
D) $648000.