Answer:
d. $258,700
Explanation:
Note: The full question is attached as picture below
Purchase Budget for December
Particulars Amount
Cost of goods sold (65% of 390,000) $253,500
Add: Desired ending inventory $208,000
(80% of following monthly COGS)
Total inventory required $461,500
Less: Beginning inventory $202,800
Purchases $258,700
Thus, the Accounts payable at the end of December is $258,700
