Month Budgeted Sales January $ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Selling and Administrative Expenses Per Month are as follows: Vages, $15,000 dvertising, $12,000 Depreciation, $3,000 Dther, 4 percent of Sales Cost of Goods Sold is 60% of Sales. All inventory is purchased in the month it is sold. Inventory purchases are paid 2/3 in the month of purchase, the remaining 1/3 paid in the following month. hat amount of Accounts Payable would be reported on the Balance Sheet at the end of February? a. $17,000 b. $54,000 C. $34,000
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Funnel Manufacturing Company has provided the follwoing information:
Budgeted
Sales
Month
January
$ 76,000
February
85,000
March
92,000
April
79,000
Budgeted Selling and Administrative Expenses Per Month are as follows:
Wages, $15,000
Advertising, $12,000
Depreciation, $3,000
Other, 4 percent of Sales
Cost of Goods Sold is 60% of Sales. All inventory is purchased in the month it is sold. Inventory
purchases are paid 2/3 in the month of purchase, the remaining 1/3 paid in the following month.
What amount of Accounts Payable would be reported on the Balance Sheet at the end of February?
а.
$17,000
b.
$54,000
C.
$34,000
d.
$28,333](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6febf2eb-8c56-49d3-85b3-c62774f3a392%2Fe0c9b2d0-44ab-4343-9e0f-a54c3a0f0210%2F6he5ksm_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)