Payne Company provided the following information relevant to its inventory sales and purchases for December Year 1 and the first quarter of Year 2:
Cost of goods sold :
December Year 1 (Actual) - $92,000
Jan. Year 2 (Budgeted) - $152,000 Feb. Year 2 (Budgeted) - $192,000
Mar. Year 2 (Budgeted) - $132,000 Desired ending Inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account January Year 2 budgeted purchases are $162,000. The normal schedule for inventory payments is 60% payment in month of purchase and 40% payment in month following purchase Budgeted cash payments for inventory in February Year 2 would be
Multiple Choice a.$171,000 b.$106,200 c.$164,000
