Question
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March Material purchases $78,500
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months:
January | February | March | |
Material purchases | $78,500 | $82,000 | $80,750 |
Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following the purchase. The December Accounts Payable balance is $36,500. The budgeted cash payments for materials in January are:
$75,750 | ||
$82,000 | ||
$80,250 | ||
$78,500 |
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months:
January | February | March | |
Material purchases | $78,500 | $82,000 | $80,750 |
Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following the purchase. The December Accounts Payable balance is $36,500. The expected balance of the Accounts Payable account in January 31 is:
$41,000 | ||
$39,250 | ||
$36,500 | ||
$40,375 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started