The following information is from the manufacturing budget and budgeted financia
ID: 2379741 • Letter: T
Question
The following information is from the manufacturing budget and budgeted financial statements of Taylor Corp.:
Direct materials inventory, 1/1...............................................
$ 82,000
Direct materials inventory, 12/31............................................
98,000
Direct materials budgeted for use during year.........................
340,000
Accounts payable to suppliers, 1/1.........................................
50,000
Accounts payable to suppliers, 12/31......................................
60,000
9. Refer to the information above. For the year, budgeted purchases of direct materials amounted to:
Answer
10. Refer to the information above. For the year, budgeted cash payments to suppliers amounted to:
Direct materials inventory, 1/1...............................................
$ 82,000
Direct materials inventory, 12/31............................................
98,000
Direct materials budgeted for use during year.........................
340,000
Accounts payable to suppliers, 1/1.........................................
50,000
Accounts payable to suppliers, 12/31......................................
60,000
Explanation / Answer
9) 340000 + ( 98000 - 82000 ) = 356000
10) 340000 + ( 50000 - 60000 ) + ( 98000 - 82000 ) = $346,000
Hence
9) C) $356,000
10) B) $346,000
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