Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases

Multiple Choice

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.In Acti's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?

A) $780,000
B) $564,000
C) $468,000
D) $588,000