Bean Manufacturing reported the following information for 2013: $\begin{array}{ll}&\text { October}&\text { November }&\text {December }\
\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 &\$ 288,000
\end{array}$
Operating expenses are: Salaries, $100,000; Depreciation, $40,000; Rent, $20,000; Utilities, $28,000
-Operating expenses are paid during the month incurred.
-Accounts payable is used only for inventory acquisitions.
How much is the budgeted amount of cash to be paid for operating expenses in November?
A)$404,000
B)$148,000
C)$188,000
D)$444,000

Question

Bean Manufacturing reported the following information for 2013: $\begin{array}{ll}&\text { October}&\text { November }&\text {December }\
\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 &\$ 288,000
\end{array}$
 Operating expenses are: Salaries, $100,000; Depreciation, $40,000; Rent, $20,000; Utilities, $28,000 
-Operating expenses are paid during the month incurred.
-Accounts payable is used only for inventory acquisitions.
How much is the budgeted amount of cash to be paid for operating expenses in November?
A)$404,000
B)$148,000
C)$188,000
D)$444,000

Quizplus · Accepted Answer

The budgeted amount of cash to be paid for operating expenses in November is the sum of all operating expenses except depreciation (a non-cash expense): $100,000 (Salaries) + $20,000 (Rent) + $28,000 (Utilities) = $148,000.

Bean Manufacturing Reported the Following Information for 2013 Operating Expenses Are: Salaries, $100,000; Depreciation, $40,000; Rent, $20,000; Utilities