Solved

Mudbug International Has Budgeted Inventory Purchases as Follows The Budget Assumes That 50% of a Given Month's Purchases

Question 102

Essay

Mudbug International has budgeted inventory purchases as follows:
 Apr  May  Jun  Budgeted purchases $80,000$75,000$70,000\begin{array} { | l | r | r | r | } \hline & \text { Apr } & \text { May } & \text { Jun } \\\hline \text { Budgeted purchases } & \$ 80,000 & \$ 75,000 & \$ 70,000 \\\hline\end{array}
The budget assumes that 50% of a given month's purchases are paid in the month of purchase, and the remaining 50% is paid out one month later. Accounts payable to inventory suppliers at March 31 was $38,000. Please use the format below and prepare the budgeted cash payments for inventory purchases.
 Budgeted Cash Payments for Inventory  Apr  May  Jun  Purchases 50% of previous month purchases 50% of current month purchases  Total cash payments \begin{array} { | l | l | l | l | } \hline \text { Budgeted Cash Payments for Inventory } & \text { Apr } & \text { May } & \text { Jun } \\ \text { Purchases } & & & \\\hline 50 \% \text { of previous month purchases } & & & \\\hline 50 \% \text { of current month purchases } & & & \\\hline \text { Total cash payments } & & & \\\hline\end{array}

Correct Answer:

verifed

Verified

\[\begin{array} { | l | l | l | l | }
\...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents