The Lauth City Council has appropriated $75,000 to the Parks and Recreation Department for the purchase of supplies. In the first week of the fiscal year, the department manager places an order for...

The Lauth City Council has appropriated $75,000 to the Parks and Recreation Department for the purchase of supplies. In the first week of the fiscal year, the department manager places an order for $5,000 in supplies to be received in 2 weeks. Two weeks later, the same manager places another order for $3,000 in supplies to be delivered in 1 month.

This problem was contributed by Chris Goodman.

1. At the end of the first month of the fiscal year, how much of the budget appropriation does the

Parks and Recreation Department have remaining for supplies?

a. $75,000

b. $67,000

c. $72,000

d. None of the above.

2. As of the end of the first month of the fiscal year, how much is encumbered by the Parks and Recreation Department?

a. $5,000

b. $3,000

c. $8,000

d. $0