Calder Water Company Has Budgeted Direct Materials Inventory Purchases as Follows

Multiple Choice

Calder Water Company has budgeted direct materials inventory purchases as follows: October: $300,000
November: $360,000
December: $460,000
Calder pays for 20% of their purchases during the month of purchase,70% during the month following the purchase,and the remaining 10% two months after the month of purchase.What is the budgeted accounts payable balance on December 31?

A) $368,000
B) $404,000
C) $460,000
D) $440,000