General,Inc.has prepared the following direct materials purchases budget: $$\begin{array} { | l | r | }
\hline& { \text { Budgeted DM } } \
\text { Month } & \text { Purchases } \
\hline \text { June } & \$ 69,000 \
\hline \text { July } & 78,500 \
\hline \text { August } & 78,100 \
\hline \text { September } & 76,000 \
\hline \text { October } & 78,200 \
\hline
\end{array}$$ All purchases are paid for as follows: 40% in the month of purchase,50% in the following month,and 10% two months after purchase.Calculate budgeted balance of accounts payable at the end of October.
A)$46,920
B)$54,520
C)$7,600
D)$15,420

Question

General,Inc.has prepared the following direct materials purchases budget: $$\begin{array} { | l | r | } 
\hline& { \text { Budgeted DM } } \
\text { Month } & \text { Purchases } \
\hline \text { June } & \$ 69,000 \
\hline \text { July } & 78,500 \
\hline \text { August } & 78,100 \
\hline \text { September } & 76,000 \
\hline \text { October } & 78,200 \
\hline
\end{array}$$ All purchases are paid for as follows: 40% in the month of purchase,50% in the following month,and 10% two months after purchase.Calculate budgeted balance of accounts payable at the end of October.
A)$46,920
B)$54,520
C)$7,600
D)$15,420

Quizplus · Accepted Answer

The balance of accounts payable at the end of October includes 50% of October purchases ($78,200 * 50% = $39,100) and 10% of September purchases ($76,000 * 10% = $7,600), totaling $46,700.

General,Inc All Purchases Are Paid for as Follows: 40% in the |