The Following Are Budgeted Data for the Bingham Corporation, a Merchandising

question 121

Multiple Choice

The following are budgeted data for the Bingham Corporation, a merchandising company: Assume that all purchases are paid for in the month following the month of purchase. The cash disbursements for purchases that would appear in the April cash budget would be:

• A)$180,000
• B)$157,500
• C)$240,000
• D)$217,500

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Definitions:

Process Costing

A costing method used when essentially homogeneous products are produced on a continuous basis.

Cost Reconciliation Report

A financial report that reconciles the estimated, budgeted, or standard costs with the actual costs incurred.

Costs Accounted For

The total costs assigned to completed units and units still in production, ensuring that all manufacturing costs are allocated according to the cost accounting method in use.

Beginning Work in Process Inventory

The inventory of partially finished goods at the start of an accounting period.