[Gusgus]

Sir i ahve a question i dont understand,
A company budgets to purchase $500000 in material in April, $800000in May and $700000 in June. 10% of purchases are paid for in the month of purchase, in order to benefit from a discount of 2% for immediate payment. One half of the remaining purchases are paid for in the following month and the rest are paid after two months. What are the budgetted payments to material suppliers in June?

I dont understand do i take the 10% of purchase to be paid from april or june? And how is the 2% accounted for

[Gusgus]

Im having problem with this same question.
What i did was.
I took 5 empl. × 38hrs ×$9.50 =$1805
Overtime 20hrs × $9.50 = $ $190
Overtime premium 20 hrs ×$3.80= $76
Overtime preium from direct worker 12hr × $12 ×0.4= $57.60

Added everything and got $2129 rounded off.

Where did i go wrong?

[Author]

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