Question

) Dry Fruit Grocers a local grocer has budgeted inventorypurchases as follows:

October: $300,000 November: $350,000 December: $390,000 Dry FruitGrocers pays for 20% of their purchases during the month ofpurchase, 70%during the month following the purchase, and theremaining 10% two months after the month of purchase. What is thebudgeted accounts payable balance on December 31?

A) $312,000

B) $347,000

C) $390,000

D) $425,000

A manufacturing company's budgeted income statement includes thefollowing data:

Data extracted from budgeted income statement Mar A r Ma Jun ales$120,00 $90,00 $95,00 $100,00 Commission ex ense (15% of sales)18,0 13,50 14,25 15,0 alaries ex erase 30,0 30,00 30,00 30,00iscellaneous ex erase-4% of sales 4,80 3,60 3,80 4,00 ent ex erase3,60 3,60 3,60 3,60 tili ex erase 1,90 1,90 1,90 1,90 surance exerase 2,10 2,10 2,10 2,10 e reciation ex erase 4,40 4,40 4,404,40

The budgefi assumes that 60% of commission expenses are paid in themonth they were incurred and the remaining 40%are paid one monthlater. In addition, 50% of salary expenses are paid in the monthincurred and the remaining 50%are paid one month later.Miscellaneous expenses, rent expense and utility expenses areassumed to be paid in the same month in which they are incurred.Insurance was prepaid for the year on January 1. How much is thetotal of the budgeted cash payments for selling and administrativeexpenses for the month of May?

A) $54,200 B) $53,250 C) $54,400 D) $53,900

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