The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication....

Question

Question

The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication. Direct

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

a)

Consumption of materials = Opening Inventory + Purchases - Closing Inventory of materials

So, $380,000 = $68,000 + Purchases - $172,000

So, Purchases = $380,000 + $172,000 - $68,000

So, Purchases = $484,000

b)

Amount paid to suppliers = Opening payables + Purchases – Closing Payables

= $50,000 + $484,000 - $79,000

= $455,000

Add a comment

Answer 2

Similar Homework Help Questions

The following information is from the Manufacturing budget and the budgeted financial statements of Fabor Fabrication....

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....

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...
Exercise 23.1 Budgeting Purchases and Cash Payments (LO23-4, LO23-5) The following information is from the manufacturing...

Exercise 23.1 Budgeting Purchases and Cash Payments (LO23-4, LO23-5) 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 $ 68,000 173,000 280,000 50,000 79,000 a. Compute the budgeted amount for purchases of direct materials during the year. b. Compute...

The following information is from the manufacturing budget and budgeted financial statements of Altman Corp.: Direct...

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.
The following information was taken from the 2018 financial statements of Waterway Industries: Inventory, January 1,...

The following information was taken from the 2018 financial statements of Waterway Industries: Inventory, January 1, 2018 $ 177000 Inventory, December 31, 2018 242000 Accounts payable, January 1, 2018 157000 Accounts payable, December 31, 2018 234000 Sales revenue 1120000 Cost of goods sold 802000 If the direct method is used in the 2018 statement of cash flows, what amount should Waterway report as cash payments to suppliers?
The following information pertains to the January operating budget for Casey Corporation. ∙ Budgeted sales for...

The following information pertains to the January operating budget for Casey Corporation. ∙ Budgeted sales for January $200,000 and February $100,000. ∙ Collections for sales are 60% in the month of sale and 40% the next month. ∙ Gross margin is 30% of sales. ∙ Administrative costs are $10,000 each month. ∙ Beginning accounts receivable is $20,000. ∙ Beginning inventory is $14,000. ∙ Beginning accounts payable is $65,000. (All from inventory purchases.) ∙ Purchases are paid in full the following...

Need Selling & Administrative Expense Budget, Cash Budget, Budgeted Income Statement for EXCEL. Schedules to include:...

Need Selling & Administrative Expense Budget, Cash Budget, Budgeted Income Statement for EXCEL. Schedules to include: a. Sales Budget, with a Schedule of Expected Cash Collections b. Production Budget c. Ending Finished Goods Inventory Budget d. Direct Materials Budget, with a Schedule of Cash Disbursement e. Direct Labor Budget f. Manufacturing Overhead Budget g. Selling & Administrative Expense Budget h. Cash Budget i Budgeted Income Statement Sharp Products is a manufacturing company. It uses absorption costing for budgeting. amount unit...
Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances and...

Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances and merchandise inventory balances below. Cash payments on accounts payable during each month are expected to be May, $1,300,000; June, $1,500,000; July, $1,350,000; and August, $1,400,000 Accounts Payable Merchandise Inventory May 31 $ 120,000 $ 250,000 June 30 120,000 500,000 July 31 300,000 200,000 August 31 110,000 380,000 (1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: June July August Ending accounts payable Payments...
Yancey Company budgeted direct materials purchases of $192,560 in January and $138,840 in February. Assume Yancey...

Yancey Company budgeted direct materials purchases of $192,560 in January and $138,840 in February. Assume Yancey pays for direct materials purchases 80% in the month of purchase and 20% in the month after purchase. The Accounts Payable balance on January 1 is $30,000. Prepare a schedule of cash payments for purchases for January and February. Round to the nearest dollar. Begin by computing the total cash payments for direct materials for January and February. Then, compute the Accounts Payable balance...

Cost accounting problem HW HF 10.37 Master budget, budgeted financial statements, solve for unknown Anchor Manufacturing...

Cost accounting problem HW HF 10.37 Master budget, budgeted financial statements, solve for unknown Anchor Manufacturing has 02 forecasted sales of 5,000 units of its product at $75 each for the next month. Beginning inventory consists of 800 pounds of direct materials and 300 units of finished goods. The managers would like to end the month with 1,200 pounds of raw materials, no units in work in process, and 500 units in finished goods. The firm accounts for inventory using...

The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication....

Homework Answers