Assume that a company provided the following information and assumptions from its master budget: Sales budget:...

 

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Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is aways 25% of next month's unit sales. Direct materials budget: Each unit of finished goods requires 3 pounds of raw material that cost $2.00 per pound. The ending raw materials inventory is always 30% of next month's production needs. 40% of raw material purchases are paid in the current and the remainder is paid in the following month. What is the budgeted accounts payable balance at the end of June? Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is aways 25% of next month's unit sales. Direct materials budget: Each unit of finished goods requires 3 pounds of raw material that cost $2.00 per pound. The ending raw materials inventory is always 30% of next month's production needs. 40% of raw material purchases are paid in the current and the remainder is paid in the following month. What is the budgeted accounts payable balance at the end of June?

Answer rating: 100% (QA)

Production Budget June July Auguts Budgeted Unit sales 20000 18000 17000 Add ... View the full answer