Question 37

Galina, Inc. has prepared the following direct materials purchases budget:

Month Budgeted DM purchases

June $69,000

July 78,500

August 78,100

September 76,000

October 78,200

All purchases are paid for as follows: 40% in the month of purchase; 50% in the following month; and 10% two months after purchase. Calculate the budgeted balance of accounts payable at the end of October.

	A.	$46,920
	B.	$54,520
	C.	$7,600