Bean Manufacturing reported the following information for 2016: $$\text { Budgeted purchases } \quad \frac { \text { October } } { \$ 240,000 } \quad \frac { \text { November } } { \$ 256,000 } \quad \frac { \text { December } } { \$ 288,000 }$$ Operating expenses are: Salaries, $100,000; Depreciation, $40,000; Rent, $20,000; Utilities, $28,000
•Operating expenses are paid during the month incurred.
•Accounts payable is used only for inventory acquisitions.
How much is the budgeted amount of cash to be paid for operating expenses in November?
A)$404,000
B)$148,000
C)$188,000
D)$444,000

Question

Bean Manufacturing reported the following information for 2016: $$\text { Budgeted purchases } \quad \frac { \text { October } } { \$ 240,000 } \quad \frac { \text { November } } { \$ 256,000 } \quad \frac { \text { December } } { \$ 288,000 }$$ Operating expenses are: Salaries, $100,000; Depreciation, $40,000; Rent, $20,000; Utilities, $28,000 
•Operating expenses are paid during the month incurred.
•Accounts payable is used only for inventory acquisitions.
How much is the budgeted amount of cash to be paid for operating expenses in November?
A)$404,000
B)$148,000
C)$188,000
D)$444,000

Quizplus · Accepted Answer

The budgeted amount of cash to be paid for operating expenses in November is the sum of all operating expenses except depreciation (a non-cash expense): $100,000 (Salaries) + $20,000 (Rent) + $28,000 (Utilities) = $148,000.

Bean Manufacturing Reported the Following Information for 2016 Operating Expenses Are: Salaries, $100,000; Depreciation, $40,000; Rent, $20,000; Utilities