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Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Me ending inventory at 20% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $82,000. All pur on account with 25% of accounts paid in the month of purchase and the remaining 75% paid in the month following the month of purch Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases Based on this information the total cash paid in March to settle accounts payable is Multiple Choice January February March $46,000 $62,000 $66,000 12,400 $17,300 58,400 (9,200) $49,200

Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Me ending inventory at 20% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $82,000. All pur on account with 25% of accounts paid in the month of purchase and the remaining 75% paid in the month following the month of purch Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases Based on this information the total cash paid in March to settle accounts payable is Multiple Choice January February March $46,000 $62,000 $66,000 12,400 $17,300 58,400 (9,200) $49,200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 20% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $82,000. All purchases are made on account with 25% of accounts paid in the month of purchase and the remaining 75% paid in the month following the month of purchase. Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases Based on this information the total cash paid in March to settle accounts payable is Multiple Choice $17,300. January February March $46,000 $62,000 $66,000 12,400 58,400 (9,200) $64,400 $49,200
Transcribed Image Text:Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 20% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $82,000. All purchases are made on account with 25% of accounts paid in the month of purchase and the remaining 75% paid in the month following the month of purchase. Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases Based on this information the total cash paid in March to settle accounts payable is Multiple Choice $17,300. January February March $46,000 $62,000 $66,000 12,400 58,400 (9,200) $64,400 $49,200
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