Question

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 25,000
Direct materials budgeted for use during the year 250,000
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 year to suppliers of materials.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
(a)Purchase Budget
Particulars $
Direct materials inventory, December 31 25,000
ADD:Direct materials budgeted for use during the year 250,000
LESS:Direct materials inventory, January 1 -68,000
Budgeted Purchases 207,000
(b)Cash Budget
Particulars $
Accounts payable to suppliers of materials, January 1 50,000
ADD:Purchases 207000
LESS:Accounts payable to suppliers of materials, December 31 -79000
Amount of cash paid to suppliers 178,000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar 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 31 155,000 Direct materials budgeted for use during the year 360,000 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 year...
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$68,000Direct materials inventory, December 31 87,000Direct materials budgeted for use during the year 380,000Accounts payable to suppliers of materials, January 1 50,000Accounts 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 year to suppliers of materials.
9. The following information is from the manufacturing budget and budgeted financial statements of Altman Corp.:...
9. The following information is from the manufacturing budget and budgeted financial statements of Altman Corp.: Direct materials inventory, 1/1 $ 86,000 Direct materials inventory, 12/31 $ 102,000 Direct materials budgeted for use during year $ 344,000 Accounts payable to suppliers, 1/1 $ 54,000 Accounts payable to suppliers, 12/31 $ 64,000 For the year, budgeted cash payments to suppliers amounted to: Group of answer choices $354,000. $350,000. $334,000. $344,000.
6-43 cash budgeting, budgeted balance sheet (Continuation 016-42) (Appendix) Refer to the information in Problem 6-42....
6-43 cash budgeting, budgeted balance sheet (Continuation 016-42) (Appendix) Refer to the information in Problem 6-42. Budgeted balances at January 31, 2018 are as follows: Cash                                                           ? Accounts receivable                                 ? Inventory                                                     ? Property. plant and equipment (net)    $1,175,600 Accounts payable                                                 ? Long-term liabilities                                      182,000 Stockholders' equity                                            ? Selected budget information for December 2017 follows: Cash balance, December 31, 2017                  $124,000 Budgeted sales                                                     1,650,000               Budgeted materials purchases                         820,000                                                                                           Customer invoices are payable within 30 days. From past experience, Skulas’s...
Exercise 2-31 Prepare Statements for a Manufacturing Company (L.O. 2, 4) The following balances are from...
Exercise 2-31 Prepare Statements for a Manufacturing Company (L.O. 2, 4) The following balances are from the accounts of Secol Machining Company: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 98,100 $ 108,700 Work-in-process inventory 109,400 107,500 Finished goods inventory 44,100 44,700 Direct materials purchased during the year amount to $512,600, and the cost of goods sold for the year was $1,885,000. Required: Prepare a cost of goods sold statement. (Input all amounts as positive values. Omit the...
1. The following information has been taken from the perpetual inventory system of Elite Mfg. Co....
1. The following information has been taken from the perpetual inventory system of Elite Mfg. Co. for the month ended August 31: Purchases of direct materials $ 80,000 Direct materials used $ 68,500 Direct labor costs assigned to production $ 28,000 Manufacturing overhead costs incurred (and applied) $ 35,000 Balances in inventory August 31 August 1 Materials $ ? 30,000 Work in Process $ 64,000 57,000 Finished Goods $ 69,000 49,000    Total manufacturing costs charged (debited) to Work in...
Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 715,000 candles for the year. Wax...
Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 715,000 candles for the year. Wax is required to produce a candle. Assume 14 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,100 pounds. The desired December 31 wax inventory is 12,700 pounds. If candle wax costs $1.20 per pound, determine the direct materials purchases budget for the year. (One pound = 16 ounces.) Round all computed answers to the nearest whole dollar....
Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances...
Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,400,000; June, $1,400,000; July, $1,250,000; and August, $1,300,000 Accounts Payable Merchandise Inventory May 31 $ 180,000 $ 250,000 June 30 160,000 300,000 July 31 300,000 400,000 August 31 180,000 300,000 (1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: June July August Ending accounts payable Payments...
Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during...
Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $250,000 of materials. Used $180,000 of direct materials in production. Incurred $450,000 of direct labor wages. Incurred $180,000 of factory overhead. Transferred $760,000 of work in process to finished goods. Sold goods for $1,200,000. Sold goods with a cost of $675,000. Incurred $215,000 of selling expense. Incurred $125,000 of...
Webster Company has the following sales budget.       January            $200,000             February&nbsp
Webster Company has the following sales budget.       January            $200,000             February           $240,000             March               $300,000             April                  $360,000       Cost of sales is 70% of sales. Sales are collected 40% in the month of sale and 60% in the following month. Webster keeps inventory equal to double the coming month's budgeted sales requirements. It pays for purchases 80% in the month of purchase and 20% in the month after purchase. Inventory at the beginning of January is $190,000.   Webster...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT