(Budgeted purchases; budgeted cash payments) Grenfell Company is preparing a cash budge for 2010 for purchases of Calvos. Budgeted data are as follows:
|
Cost of goods sold for the year 2010 |
$600,000 |
|
Accounts payable, 1/1/10 |
40,000 |
|
Inventory, 1/1/10 |
60,000 |
|
Desired inventory, 12/31/10 |
84,000 |
Purchases will be made in 12 equal monthly amounts and paid for in the following month. Compute the budgeted cash payment for purchases of Calvos for 2010.