Exercise 23.1 (Algo) Budgeting Purchases and Cash Payments (LO23-4, LO23-5) The following information is from the manufacturing budget and the budgeted financial statements of Schenck Development Partners. Direct materials inventory, January 1 Direct materials inventory, December 31 Direct material usage budgeted for the year Accounts payable to suppliers of materials, January 1 Accounts payable to suppliers of materials, December 31 $ 68,000 184,000 370,000 50,000 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.
Exercise 23.1 (Algo) Budgeting Purchases and Cash Payments (LO23-4, LO23-5) The following information is from the manufacturing budget and the budgeted financial statements of Schenck Development Partners. Direct materials inventory, January 1 Direct materials inventory, December 31 Direct material usage budgeted for the year Accounts payable to suppliers of materials, January 1 Accounts payable to suppliers of materials, December 31 $ 68,000 184,000 370,000 50,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Budget purchases help
Transcribed Image Text:Exercise 23.1 (Algo) Budgeting Purchases and Cash Payments (LO23-4, LO23-5)
The following information is from the manufacturing budget and the budgeted financial statements of Schenck Development Partners.
Direct materials inventory, January 1
Direct materials inventory, December 31
Direct material usage budgeted for the year
Accounts payable to suppliers of materials, January 1
Accounts payable to suppliers of materials, December 31
$ 68,000
184,000
370,000
50,000
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.
a. Budgeted amount for purchases of direct materials
b. Budgeted cash payments
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