Payne Company Provided the Following Information Relevant to Its Inventory

question 4

Multiple Choice

Payne Company provided the following information relevant to its inventory sales and purchases for December 2013 and the first quarter of 2014: $$\begin{array} { | l | c | c | c | c | } \hline & \text { Dec. } 2013 & \text { Jan. } 2014 & \text { Feb. 2014 } & \text { Mar. } 2014 \\\hline & \text { (Actual) } & \text { (Budgeted) } & \text { (Budgeted) } & \text { (Budgeted) } \\\hline \text { Cost of goods sold } & \$ 80,000 & \$ 140,000 & \$ 180,000 & \$ 120,000 \\\hline\end{array}$$ Desired ending inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account. January 2014 budgeted purchases are $150,000. 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 2014 would be:

• A) $132,600.
• B) $152,600.
• C) $99,000.
• D) $159,000.

---

Definitions:

Epigenetics

The study of how the expression of genes is influenced by factors other than changes in the DNA sequence, leading to changes in phenotype without altering the genotype.

Environmental Influences

External factors surrounding an individual that impact behaviors, development, and life outcomes.

Gene Expression

The process by which information from a gene is used in the synthesis of a functional gene product, often proteins, leading to the manifestation of genetic traits.

Biopsychosocial Approach

A comprehensive perspective in health and illness that considers biological, psychological, and social factors.