Acc400 Accounting for Decision Making: E23.1 The following information is from (Fabor Fabrication)

Acc400 Accounting for Decision Making
Week 4 Assignment

E23.1 Budgeting Purchases and Cash Payments
The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication:
Direct materials inventory, Jan 1 73,000
Direct materials inventory, Dec 31 85,000
Direct materials budgeted for use during the year 264,000
Accounts payable to suppliers of materials, Jan 1 46,000
Accounts payable to suppliers of materials, Dec 31 77,000

Compute the budgeted amounts for:
a. Purchases of direct materials during the year.
b. Cash payments during the year to suppliers of materials.
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