Question: 130 General, Inc. has prepared the following direct materials purchases budget: Month June July August September October Budgeted DM Purchases $ 69,000 77,500 76,900 77,800 76,800 All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate the budgeted balance of accounts payable at the end of October. a. $69,120 b. $100,240 c. $31,120 d. $61,840

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question: 130
General, Inc. has prepared the following direct materials purchases
budget:
Month
June
July
August
September
October
Budgeted DM Purchases
$ 69,000
77,500
76,900
77,800
76,800
All purchases are paid for as follows: 10% in the month of purchase,
50% in the following month, and 40% two months after purchase.
Calculate the budgeted balance of accounts payable at the end of
October.
a. $69,120
b. $100,240
c. $31,120
d. $61,840
Transcribed Image Text:Question: 130 General, Inc. has prepared the following direct materials purchases budget: Month June July August September October Budgeted DM Purchases $ 69,000 77,500 76,900 77,800 76,800 All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate the budgeted balance of accounts payable at the end of October. a. $69,120 b. $100,240 c. $31,120 d. $61,840
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