Question

Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March Material purchases $12,040 14,150 10,970 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The expected January 30 Accounts Payable balance is: Group of answer choices $6,500. $7,075. $12,040. $6,020 $9,270.

Answer 1

Answer:

c) 6020

Explanation:

January purchase is 12040

50 % of this purchase will be due on January 30 as remaining 50 % will be paid in January itself

so amount due will be = 12040 x 50 %

=  6020