Saniya Corp.is preparing their budget for the second quarter and provides the following data: $$\begin{array} { | l | r | r | r | }
\hline & { \text { Apr } } & { \text { May } } & { \text { Jun } } \
\hline \text { Budgeted purchases of direct materials } & \$ 20,000 & \$ 24,000 & { \$ 23,000 } \
\hline \begin{array} { l }
\text { Budgeted Cash Payments for Purchases of direct } \
\text { materials }
\end{array} &{ \text { Apr } } & { \text { May } } & { \text { Jun } } \
\hline 60 \% \text { of previous month purchases } & \$ 6,000 & \$ 12,000 & \$ 14,400 \
\hline 40 \% \text { of current month purchases } & \underline { 8000 } & \underline { 9600 } & \underline { 9200 } \
\hline \text { Total cash payments } & \$ 14,000 & \$ 21,600 & \$ 23,600 \
\hline
\end{array}$$ Assume that accounts payable pertains only to suppliers of direct materials inventory.Based on the above data,the amount of Accounts Payable that should be shown in the budgeted balance sheet as of June 30 is ________.

Question

Saniya Corp.is preparing their budget for the second quarter and provides the following data: $$\begin{array} { | l | r | r | r | } 
\hline & { \text { Apr } } & { \text { May } } &  { \text { Jun } } \
\hline \text { Budgeted purchases of direct materials } & \$ 20,000 & \$ 24,000 & { \$ 23,000 } \
\hline \begin{array} { l } 
\text { Budgeted Cash Payments for Purchases of direct } \
\text { materials }
\end{array} &{ \text { Apr } } & { \text { May } } & { \text { Jun } } \
\hline 60 \% \text { of previous month purchases } & \$ 6,000 & \$ 12,000 & \$ 14,400 \
\hline 40 \% \text { of current month purchases } & \underline { 8000 } & \underline { 9600 } & \underline { 9200 } \
\hline \text { Total cash payments } & \$ 14,000 & \$ 21,600 & \$ 23,600 \
\hline
\end{array}$$ Assume that accounts payable pertains only to suppliers of direct materials inventory.Based on the above data,the amount of Accounts Payable that should be shown in the budgeted balance sheet as of June 30 is ________.

Quizplus · Accepted Answer

The amount of Accounts Payable as of June 30 is calculated based on the purchases made in June that have not yet been paid by the end of June. Since 60% of the purchases are paid in the month following the purchase, the Accounts Payable as of June 30 will be 60% of June's purchases. June's purchases are $23,000, so 60% of $23,000 is $13,800.

Saniya Corp Assume That Accounts Payable Pertains Only to Suppliers of Direct