Purchases in May were $ 60 comma 000, while expected purchases for June and July are $ 75 comma 000 and $ 93 comma 000, respectively. All purchases are paid 30% in the month of purchase and 70% in the following month. At what amount are June payments for purchases budgeted?

The budgeted payment for purchases in June will be $64500

Explanation:

Every month, the payment is made for partially for the previous month's purchases and partially for the current month's purchases. Thus, the payment for purchases in June will include the amount due for 70% of May's purchases and 30% of June's purchases.

The payment budgeted for June will be,

Payments for purchases-June = 0.7 * 60000 + 0.3 * 75000

Payments for purchases-June = 64500

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