Reference no: EM132536559

Question 1: A company purchases all merchandise on credit. It budgeted the following month-end accounts payable and merchandise inventory balances; it also budgeted cash disbursements as indicated. Compute the budgeted merchandise purchases and cost of goods sold for February.

A/P     Merchandise              Inventory           Cash Disb.

Jan.  31 220,000                 390,000           jan 1,600,000

feb.  28 240,000                305,000            feb 1,490,000

Option a) MERCH. PURCH $250,000; COGsold $254,000

Option b) MERCH. PURCH $169,000; COGsold $254,000

Option c) MERCH. PURCH $254,000; COGsold $169,000

Option d) MERCH. PURCH $269,000; COGsold $250,000

Option e) none of the above