Specifically, that breaks down to $15,000 for June, $45,000 for May, and $17,500 for April. To calculate the cash payments for June for direct materials, let's break down the payments based on the company's payment schedule: Payments for June purchases: This is calculated as 25% of June purchases., Answer: $77,500 Explanation: Calculation of cash disbursements for June: Cash disbursements in the month of June of merchandise purchased in April ($70,000 * ACCT 220 Hw - Some homework problems to help others if they don't understand the material., All purchases are on account and the company pays 25% of purchases in the month of the purchase, 50% in the month after the purchase, and the remaining balance in the second month after the purchase., (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April., According to the given information, the company expects to spend $70,000 in April, $90,000 in May, and $60,000 in June for direct material purchases. They pay 25% of the purchases in the month of the purchase and the remaining 75% in the following month., A company budgets the following merchandising purchases: April $70,000; May $90,000; June: $60,000. All purchases are on account and the company pays 25% of purchases in the month of the purchase and the remaining amount in the following month Cash disbursements for June for merchandise is $.