Answer the Following Questions Using the Information Below

question 167

Multiple Choice

Answer the following questions using the information below:
The following information pertains to the January operating budget for Brindabella Corporation,a retailer:
Budgeted sales are $300 000 for January
Collections of sales are 50% in the month of sale and 50% the next month
Cost of goods sold averages 70% of sales
Merchandise purchases total $250 000 in January
Marketing costs are $3000 each month
Distribution costs are $5000 each month
Administrative costs are $10 000 each month
-For January,the amount budgeted for the non-manufacturing costs budget is:

• A)$168 000.
• B)$10 000.
• C)$78 000.
• D)$18 000.

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Definitions:

Merchandise Inventory

The goods a company holds for the purpose of sale to customers.

Merchandise Inventory

Goods or products on hand that are available for sale by a retailer or wholesaler.

Discount

A reduction in the price of goods or services, often to encourage prompt payment or increase sales.

Accounts Payable

The amounts a company owes because it purchased goods or services on credit from a supplier or vendor.