Payne Company provided the following information relevant to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: Dec. Year 1Jan. Year 2Feb. Year 2Mar. Year 2 (Actual)(Budgeted)(Budgeted)(Budgeted)Cost of goods sold$80,000 $140,000 $180,000 $120,000 Desired ending inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account. January Year 2 budgeted purchases are $150,000. The normal schedule for inventory payments is 60% payment in month of purchase and 40% payment in month following purchase.Budgeted cash payments for inventory in February Year 2 would be:
A. $159,000.
B. $132,600.
C. $99,000.
D. $152,600.
Answer: A
You might also like to view...
In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:
A) rational appeals. B) emotional appeals. C) SRC appeals. D) melodramatic appeals. E) localized appeal.
Systems selling is a key industrial marketing strategy in bidding to build large-scale industrial projects. Competition for these projects is fierce. What are the main areas of competition for these project engineering firms?
What will be an ideal response?
Mainstay, Inc, sponsors NowUCMe, a social-networking, video- and photo-sharing site. To use NowUCMe, Mainstay requires users to accept terms of service associated with the site.By clicking on "accept," users enter into a contract
a. after thirty days. b. as soon as they begin to use the service. c. when a court declares that a contract exists. d. under no circumstances.
Which of the following statements is false?
A. In process costing, the cost per unit in a department is found by spreading the period's manufacturing costs over the production activity. B. In process costing, costs are accumulated by department. C. In job-order costing, costs are accumulated by job order. D. In job-order costing, the unit cost is found by dividing the job's total cost by the job's total units. E. In process costing, the total cost of each unit is found by dividing the total factory costs by the number of units completed.