Problem::
The projections of direct materials purchases that follow are the Sombo Corporation
|
Purchases on Account |
Cash Purchases |
| December |
$40,000 |
$30,000 |
| January |
60,000 |
27,000 |
| February |
50,000 |
35,000 |
| March |
70,000 |
25,000 |
The company pays for 60% of purchases on account in the month of purchase and 40% in the month following the purchase.
Required:
Question: What is the expected cash payment for direct materials for the month of January of Sombo.
Note: Please provide through step by step calculations.