Sasha Company has a sales budget for next month of $150,000.Cost of goods sold is expected to be 40 percent of sales.All goods are purchased in the month used and paid for in the month following purchase.The beginning inventory of merchandise is $5,000, and an ending inventory of $6,000 is desired.Beginning accounts payable is $38,000. For Sasha Company, the ending accounts payable should be

Question

Quizplus · Accepted Answer

The cost of goods sold is 40% of $150,000, which is $60,000. The desired ending inventory is $6,000, and the beginning inventory is $5,000, so the purchases for the month are $60,000 + $6,000 - $5,000 = $61,000. Since all goods are paid for in the month following purchase, the ending accounts payable will be $61,000.

Sasha Company Has a Sales Budget for Next Month of $150,000.Cost