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Assume that a merchandising company prepared the following sales budget: September October $ 600,000 November $ 750,000 December $ 800,000 $ 900,000 The following Information is also available: Desired ending Inventory is $20,000 plus 70% of the next month's cost of goods sold. • Cost of goods sold is always 60% of sales. Merchandise purchases are paid 30% In the current month and 70% In the next month. Budgeted sales each month are 70% credit and 30% cash. ⚫ 40% of credit customers pay In the current month, 50% pay in the first month after the sale, and 10% pay In the second month after the sale. What is the budgeted amount of accounts payable at the end of November? Multiple Choice $176,600 $365,400 $345,700 $156,600 LE

Assume that a merchandising company prepared the following sales budget: September October $ 600,000 November $ 750,000 December $ 800,000 $ 900,000 The following Information is also available: Desired ending Inventory is $20,000 plus 70% of the next month's cost of goods sold. • Cost of goods sold is always 60% of sales. Merchandise purchases are paid 30% In the current month and 70% In the next month. Budgeted sales each month are 70% credit and 30% cash. ⚫ 40% of credit customers pay In the current month, 50% pay in the first month after the sale, and 10% pay In the second month after the sale. What is the budgeted amount of accounts payable at the end of November? Multiple Choice $176,600 $365,400 $345,700 $156,600 LE

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Assume that a merchandising company prepared the following sales budget: September October $ 600,000 November $ 750,000 December $ 800,000 $ 900,000 The following Information is also available: Desired ending Inventory is $20,000 plus 70% of the next month's cost of goods sold. • Cost of goods sold is always 60% of sales. Merchandise purchases are paid 30% In the current month and 70% In the next month. Budgeted sales each month are 70% credit and 30% cash. ⚫ 40% of credit customers pay In the current month, 50% pay in the first month after the sale, and 10% pay In the second month after the sale. What is the budgeted amount of accounts payable at the end of November? Multiple Choice $176,600 $365,400 $345,700 $156,600 LE
Transcribed Image Text:Assume that a merchandising company prepared the following sales budget: September October $ 600,000 November $ 750,000 December $ 800,000 $ 900,000 The following Information is also available: Desired ending Inventory is $20,000 plus 70% of the next month's cost of goods sold. • Cost of goods sold is always 60% of sales. Merchandise purchases are paid 30% In the current month and 70% In the next month. Budgeted sales each month are 70% credit and 30% cash. ⚫ 40% of credit customers pay In the current month, 50% pay in the first month after the sale, and 10% pay In the second month after the sale. What is the budgeted amount of accounts payable at the end of November? Multiple Choice $176,600 $365,400 $345,700 $156,600 LE
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