Asked by Courtnie Marie on May 09, 2024
Verified
In Acti's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?
A) $780,000
B) $564,000
C) $468,000
D) $588,000
Accounts Payable
Short-term liabilities representing amounts owed to suppliers or creditors for goods and services received that have not yet been paid for.
Raw Materials
The basic materials and substances that are used in the production of goods, often processed in various ways to create the final product.
- Prepare and interpret a budgeted balance sheet including the estimation of accounts payable for raw materials.
Verified Answer
MC
Macar ColomaMay 11, 2024
Final Answer :
C
Explanation :
The question does not provide any information about the amount of accounts payable for raw materials. Therefore, we need to look at Acti's budgeted balance sheet to find this information. Out of the given options, only option C has the value of accounts payable for raw materials listed as $468,000.
Explanation :
Accounts payable = $780,000 × 60% = $468,000
Reference: CH08-Ref22
Smith Corporation makes and sells a single product called a Pod.Each Pod requires 1.4 direct labor-hours at $9.60 per direct labor-hour.The direct labor workforce is fully adjusted each month to the required workload.Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year.
Reference: CH08-Ref22
Smith Corporation makes and sells a single product called a Pod.Each Pod requires 1.4 direct labor-hours at $9.60 per direct labor-hour.The direct labor workforce is fully adjusted each month to the required workload.Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year.
Learning Objectives
- Prepare and interpret a budgeted balance sheet including the estimation of accounts payable for raw materials.
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