X Company has the following information from its purchases budget, payroll budget and capital expenditures budget.
Month Inventory Purch. Payroll Budgeted Capital Expenditures Depreciation
Jan $80,000 $40,000 $10,000 $15,000
Feb 100,000 $50,000 $12,000 $15,000
March 70,000 $60,000 14,000 $15,000
The company pays for all of its purchases of inventory in the month following the purchase. It pays 50% of its payroll in the month the wages are earned and 50% in the next month and it pays for all capital expenditures in the month of the purchase.
Compute the total budgeted accounts payable and wages payable on February
Total budgeted accounts payable on Jan - $30,000 Total budgeted... View the full answer