Assume a company's sales budget for April and May is 31, 000 units and 33, 000 units, respectively. Its production budget for the same two months is 28,000 units and 29, 000 units, respectively. Each unit of finished goods required 6 pounds of raw materials. The company always maintains raw materials inventory equal to 30% of the following months production needs. Also assume the company pays $2.00 per pound of raw material. It always pays for 60% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on March 31st is $131,000. What would be the accounts payable balance at the end of April? Multiple Choice $208,760 $198,260 $ 207,093 $135,840

Assume a company's sales budget for April and May is 31, 000 units and 33, 000 units, respectively. Its production budget for the same two months is 28,000 units and 29, 000 units, respectively. Each unit of finished goods required 6 pounds of raw materials. The company always maintains raw materials inventory equal to 30% of the following months production needs. Also assume the company pays $2.00 per pound of raw material. It always pays for 60% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on March 31st is $131,000. What would be the accounts payable balance at the end of April? Multiple Choice $208,760 $198,260 $ 207,093 $135,840

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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