Below are data from the manufacturing budget and budgeted financial statements o
ID: 2598461 • Letter: B
Question
Below are data from the manufacturing budget and budgeted financial statements of Taylor Corp What wer budgeted cash payments to suppliers for the year? Direct materials inventory, 1/1 Direct materials inventory, 12/31 Direct materials budgeted for use during year Accounts payable to suppliers, 1/f Accounts payable to suppliers, 12/31 84,000 100,000 342,000 52,000 62,000 a. $332,000 b. $342,000 c. $348,000 d. $352,000 81. Shoreline Corp, has budgeted $361,800 in costs and expenses for the upcoming quarter Of this amount, $45,000 represents depreciation expense and $7,300 represents the expiration of prepayments. Shoreline's current payables balance is $265,000 at the beginning of the quarter. Budgeted payments on current payables for the quarter amount to $370,000. What is Shoreline's estimated current payables balance at the end of the quarter? a. $179,500 b. $203,500 c. $204,500 d. $310,000Explanation / Answer
Answer 80.
Direct Materials purchased = Direct Materials inventory, 12/31 + Direct Materials budgeted for use - Direct Materials inventory, 1/1
Direct Materials purchased = $100,000 + $342,000 - $84,000
Direct Materials purchased = $358,000
Budgeted Cash Payment = Direct Materials purchased + Accounts Payable to Suppliers, 1/1 - Accounts Payable to Suppliers, 12/31
Budgeted Cash Payment = $358,000 + $52,000 - $62,000
Budgeted Cash Payment = $348,000
Answer 81.
Net Budgeted Cost and Expenses = Budgeted Cost and Expenses - Depreciation Expense - Prepayment
Net Budgeted Cost and Expenses = $361,800 - $45,000 - $7,300
Net Budgeted Cost and Expenses = $309,500
Current Payable, end of period = Current Payable, beginning of period + Net Budgeted Cost and Expenses – Payment on Current Payables
Current Payable, end of period = $265,000 + $309,500 - $370,000
Current Payable, end of period = $204,500
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