A manufacturer sells a product for $5 per unit to a wholesaler who sells it at a markup of 60%, based on manufacturer selling pr
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Answer:
$159,000
Explanation:
This question is incomplete we attach the attachment below:
The computation of the budgeted cash payments for inventory is shown below:
But for that first we have to determine the purchase amount which is shown below:
Purchase = Ending inventory + cost of goods sold - beginning inventory
where,
Ending inventory = $120,000 × 25% = $30,000
Cost of goods sold = $180,000
Beginning inventory = $180,000 × 25% = $45,000
So, the purchase amount is
= $30,000 + $180,000 - $45,000
= $165,000
Now the cash payment would be
= 60% of $165,000 + 40% of $150,000
= $99,000 + $60,000
= $159,000
