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Unformatted text preview: 10% of the following quarter’s production needs. Cash disbursements for raw materials consist of payments for purchases on account in prior periods plus any payments for purchases in the current budget period. A schedule of expected cash disbursements in prepared to show cash disbursements for raw materials for the year. At Werthers Inc., the policy is to pay 60% of purchases in the quarter in which the purchase is made and 40% in the following quarter. One bag of candy requires 10 pounds of sugar. The company has 100 pounds beginning inventory of sugar. Example...
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- Spring '08
- Managerial Accounting, 6 Week, 10 pounds, direct materials budget