Answer-a)- The budgeted amount for purchases of direct materials during the year is = $385000.
Explanation-
Particulars | Amount |
$ | |
Direct material budgeted for use during the year | 280000 |
Add- Ending raw materials inventory | 173000 |
Raw materials required | 453000 |
Less- Beginning raw materials inventory | 68000 |
Raw materials purchases | 385000 |
b)- The budgeted amount for cash payments during the year to suppliers of materials is =$356000.
Explanation-
Particulars | Amount |
$ | |
Raw materials purchases | 385000 |
Add- Accounts payable to suppliers of materials, January 1 | 50000 |
Raw materials required | 435000 |
Less- Accounts payable to suppliers of materials, December 31 | 79000 |
Budgeted payments to suppliers | 356000 |
Exercise 23.1 Budgeting Purchases and Cash Payments (LO23-4, LO23-5) The following information is from the manufacturing...
The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication. Direct materials inventory, January 1 Direct materials inventory, December 31 Direct materials budgeted for use during the year Accounts payable to suppliers of materials, January 1 Accounts payable to suppliers of materials, December 31 $ 68,000 172,000 380,000 50,000 79,000 a. Compute the budgeted amount for purchases of direct materials during the year. b. Compute the budgeted amount for cash payments during the year...
The following information is from the Manufacturing budget and the budgeted financial statements of Fabor Fabrication. Direct materials inventory, January 1 $ 68,000. Direct materials inventory, December 31 106,000. Direct materials budgeted for use during the year 390,000. Accounts payable to suppliers of materials, January 1 $50,000. Accounts payable to suppliers of materials, December 31 $79,000. Compute the budgeted amount for purchases of direct materials during the year. Compute the budgeted amount for cash payments during the year to suppliers...
The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication. Direct materials inventory, January 1 $ 68,000 Direct materials inventory, December 31 64,000 Direct materials budgeted for use during the year 300,000 Accounts payable to suppliers of materials, January 1 50,000 Accounts payable to suppliers of materials, December 31 79,000 a. Compute the budgeted amount for purchases of direct materials during the year. b. Compute the budgeted amount for cash payments during the...
The following information is from the manufacturing budget and budgeted financial statements of Altman Corp.: Direct materials inventory, 11 Direct materials inventory, 12/31 Direct materials budgeted for use during year Accounts payable to suppliers, 1/1 Accounts payable to suppliers, 12/31 $ 86.000 $102.000 $344.000 $54.000 $64.000 For the year, budgeted cash payments to suppliers amounted to: $344,000 o $350,000 $334,000. $354,000.
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Determining the amount of inventory purchases and cash payments Clement Oil Corporation, which distributes gasoline products to independent gasoline stations, had $240,000 of cost of goods sold in January. The company expects a 2.5 percent increase in cost of goods sold during February. The ending inventory balance for January is $20,000, and the desired ending inventory for February is $25,000. Clement pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the...
QS 22-27A Merchandising: Cash payments for merchandise LO P4 Torres Co. forecasts merchandise purchases of $14,800 in January, $17,600 in February, and $20,200 in March; 50% of purchases are paid in the month of purchase and 50% are paid in the following month. At December 31 of the prior year, the balance of Accounts Payable (for December purchases) is $28,000. Prepare a schedule of cash payments for merchandise for each of the months of January, February, and March. QS 22-27A...
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QS 22-27A Merchandising: Cash payments for merchandise LO P4 Torres Co. forecasts merchandise purchases of $16,800 in January, $17,600 in February, and $21,200 in March; 50% of purchases are paid in the month of purchase and 50% are paid in the following month. At December 31 of the prior year, the balance of Accounts Payable (for December purchases) is $22,000. Prepare a schedule of cash payments for merchandise for each of the months of January, February, and March. TORRES CO....