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A 2019 cash budget is being prepared for the purchase of Primer, a merchandise item. Budgeted data are: Cost of goods sold for 2019 P300,000;Accounts payable 1/1/19 20,000; Inventory, 1/1/19 30,000; Inventory 12/31/19 42,000. Purchases will be made in twelve equal monthly amounts and paid for in the following month.
Problem 1: What is the 2019 budgeted cash payment for purchases of Primer?
A. P295,000 B. P300,000 C. P306,000 D. P312,000
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