Assume a company's sales budget for April and May is 41,000 units and 43,000 units, respectively. Its production budget for the same two months is 38,000 units and 39,000 units, respectively. Each unit of finished goods required 3 pounds of raw materials. The company always maintains raw materials inventory equal to 20% of the following months production needs. Also assume the company pays $2.50 per pound of raw material. It always pays for 60% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on March 31st is $141,000. What would be the accounts payable balance at the end of April? Multiple Choice $171,900 $176,900 $157,567

Assume a company's sales budget for April and May is 41,000 units and 43,000 units, respectively. Its production budget for the same two months is 38,000 units and 39,000 units, respectively. Each unit of finished goods required 3 pounds of raw materials. The company always maintains raw materials inventory equal to 20% of the following months production needs. Also assume the company pays $2.50 per pound of raw material. It always pays for 60% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on March 31st is $141,000. What would be the accounts payable balance at the end of April? Multiple Choice $171,900 $176,900 $157,567

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 10PB: All Temps has a policy of always paying within the discount period, and each of its suppliers...

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